Partial Disposal of GMET Holding

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed exploration company with a global project portfolio, announces an intended partial disposal of its stake in Guardian Metal Resources PLC ("GMET").

Power Metal has reached an agreement in principle with UCAM Ltd wherein it is intended that UCAM Ltd will purchase from Power Metal 29,758,334 shares in GMET, and warrants granted over 986,352 ordinary shares in GMET of £0.01 each, for a total cash consideration of £9,225,083.91 before costs (the "Proposed Transaction").

Completion of the Proposed Transaction is subject to UCAM completing a fundraising transaction, certain administrative processes and a legally binding Sale and Purchase Agreement (the "SPA") being entered into between Power Metal and UCAM. It is currently intended that the SPA will be entered into within 10 business days however there can be no certainty that the SPA will be entered into within this timeframe, or at all, and that the Proposed Transaction will complete on the terms set out above.

Should the Proposed Transaction be concluded as envisaged, Power Metal's resultant holding in GMET will be 25,169,772 shares, representing approximately 19.2% of GMET's issued share capital.

The proceeds will be used to redeem the £2 million loan note issued to ACAM LP on 10 June 2024, with accrued interest, and for general corporate purposes.

Tamesis Partners LLP is acting as the Company's Financial Adviser in relation to the Proposed Transaction.

Sean Wade, Chief Executive Officer of Power Metal Resources, commented:

"I am very pleased to be able to announce to shareholders the intended monetisation of a portion of our holding in GMET, and with it, to introduce to GMET such a significant strategic investor.

GMET has been a very successful investment for Power Metal and if the Proposed Transaction is completed, we will have realised a return on this part of our investment of 966%, or close to 10 times.

This would represent a strong validation of our incubator model and will hopefully give investors renewed confidence in our ability to generate significant shareholder returns.

We are committed to our remaining holding in GMET for the foreseeable future and look forward to seeing it continue to grow as part of our portfolio of high-quality assets."