The Power Metal Resources (LON:POW) share price is currently up more than 12 percent to 15.7 pence on Tuesday after the London-listed exploration group announced it had sold its remaining holding in Guardian Metal Resources.
The stock is now up more than 8 percent this year, though it remains 5 percent lower over the past 12 months. It initially hit a high of 16.95p in today’s session before pulling back.
The company announced it had entered into a binding Sale and Purchase Agreement with an investment fund managed by Duquesne Family Office LLC for the disposal of its remaining 24.7 million shares in Guardian Metal Resources.
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The sale, priced at 55 pence per share, is expected to generate gross proceeds of £13.6 million and complete in the coming weeks.
Power Metal said the divestment follows an earlier partial sale of its Guardian stake and will bring total proceeds from the investment to £22.8 million before costs.
The company had originally invested £1.9 million, implying an 11.8-fold return. The book value of the shares being sold was £6.9 million as of 31 December 2024.
Chief executive Sean Wade described the outcome as “an enormously successful investment for Power Metal, and one that has generated very considerable shareholder value.”
He added that the proceeds give the company “considerable firepower now to pursue other opportunities, a number of which have presented themselves to us in recent weeks.”
The company said it would provide further updates on how the funds will be deployed.
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