LONDON, UK: Power Metal Resources PLC (AIM:POW), a metals exploration and development company, has sold its entire stake of 69.5 million shares in Kavango Resources plc (Kavango) for 0.8p per share, raising £556,000 in cash.
Power Metal still holds 60 million warrants to buy new Kavango shares at a price of 4.25p or 5.5p, expiring in January 2025. It also has a 1% royalty on the project licences in the Kalahari Copper Belt and Ditau Camp projects that it previously jointly owned with Kavango.
Sean Wade, Power Metal’s CEO, said the disposal would help fund the company’s high impact exploration initiatives, while streamlining its diverse interests. He said the company aimed to raise cash for operations through means other than equity financings, which dilute investor holdings. He added that the funds raised would be used for accelerated exploration, including drilling of certain high impact retained exploration projects targeting large-scale metal discoveries.
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