LONDON, UK: Power Metal Resources (LON: POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announced the conditional disposal of its 100% owned E-12 Uranium Property.

E-12 is a 13km² Property located immediately south of the prolific Athabasca Basin in Northern Saskatchewan, Canada.

E-12 is one of twelve uranium properties held by 102134984 Saskatchewan Ltd (Power Sask), a wholly owned subsidiary of Power Metal Resources Canada Inc. (POW Canada) which is a wholly owned subsidiary of Power Metal.

Teathers Financial is currently in the advance stages of preparing for a change of business to become a uranium exploration focused company which plans undertake an initial public offering on the London capital markets – targeted for Q4 2022 (the “Listing”). Teathers is to be renamed Uranium Energy Exploration Plc with the ticker symbol ‘UEE’.

On 8 August 2022 Power Metal announced the conditional disposal of its interest in 100% owned Reitenbach uranium property to Teathers Financial.

A Property Purchase Agreement has been signed for Teathers Financial Plc to conditionally acquire 100% ownership of the Property, subject to completion of the Listing by 31 December 2022.

The consideration payable is £250,000 in Teathers Financial new ordinary shares of 0.1p at an issue price of 1.24114 pence per Ordinary Share and the retention of a 2% Net Smelter Return royalty over the Property.

Following completion of the E-12 disposal and the disposal of Reitenbach uranium property (announced on 8 August 2022), Power Metal will hold 118,842,853 shares in Teathers Financial or 73.75% of expected issued share capital prior to its planned IPO financing, expected to be undertaken later this current quarter.

The twelve uranium properties include Reitenbach uranium property the conditional disposal of which was announced on 8 August 2022 and the E-12 property, the conditional disposal of which is announced today.

Paul Johnson, Chief Executive Officer of Power Metal Resources PLC commented: “Upon its planned listing, Uranium Energy Exploration Plc will be the only Athabasca Basin focused junior exploration company in the London capital markets and intends to explore and advance the Reitenbach and E-12 uranium properties at pace.

Exploration work done so far across both properties has demonstrated extensive uranium prospectivity and the design of planned work programmes is well underway.

Final preparations for listing of Uranium Energy Exploration Plc are now underway and the aim is for the listing to occur by the end of this year.”

TRANSACTION TERMS

For the sale of 100% of Power Canada’s interest in the E-12 Property, one of twelve* uranium focused properties held by Power Canada within and surrounding the Athabasca Basin, Saskatchewan, Canada, the following consideration is payable:

·    The issue to Power Sask of 20,142,853 Teathers Financial new ordinary shares (“Ordinary Shares”) at a price of 1.24114p per share for a total value of £250,000.

·    Power Sask will retain a 2% Net Smelter Return (“NSR”) royalty the E-12 Property, 1% which can be bought back by Teathers Financial at any time prior to production for £750,000.

·    Following completion of the E-12 disposal and the disposal of Reitenbach property announced on 8 August 2022, Power Metal will hold 118,842,853 shares in Teathers Financial or 73.75% of current issued share capital prior to its planned IPO financing, expected to be undertaken later this current quarter.

·    The NSR’s on the Reitenbach and E-12 properties will be sold and transferred to Power Metal or its wholly owned nominee at a total value of CAD$50,000 on completion of the transaction.

The transaction is conditional on:

– The approval of Teathers Financial shareholders to the transaction and to a Rule 9 Whitewash arrangement, enabling Power Metal to acquire its interest without a requirement to make an offer for the entire company.

– The London Listing of Teathers Financial.