Power Metal Resources PLC (AIM:POW) said it had entered into a placement to raise £800,000, before expenses, to advance certain priority exploration projects and for general working capital.
The funds raised will support the acceleration and enable the potential expansion of the ongoing geophysical program and the upcoming drilling program at the Molopo Farms Complex project in Botswana, where drilling is expected to begin in mid-September targeting a sulphide discovery. nickel on a large scale.
“Our work at the Molopo Farms project in Botswana continues to support the potential for a nickel sulphide discovery in what is a unique district-scale land package where we will diamond drill not only an electromagnetic (EM) conductor , but several conductors located across a large footprint of the project,” said general manager Paul Johnson.
Power Metal recently reported significant results from an EM survey on the project which confirmed that hole K1-6 had penetrated the edge of a newly identified magnetic conductor.
READ: Power Metal Resources reports significant results from EM survey at Molopo Farms complex
“Given the scale of drivers identified, particularly in the T1-6 priority target area, and the number of drivers targeted, it was clear that we needed to prepare for the possibility of an expanded project campaign and we have undertook the financing to position itself for this expansion,” Johnson said.
It issued 57.14 million shares at 1.4 pence each, matching Friday’s closing price. Each share also includes a warrant for one new share at an exercise price of 2.0 pence with a duration of 12 months from 19 September 2022.
The placement was made by the company’s joint broker, First Equity Ltd.