Tuesday saw Power Metal Resources (LSE:POW) announce that it had completed a major strategic and operational review. The firm has been conducting the work since Andrew Bell and Paul Johnson joined as chairman and executive chairman respectively in February this year as part of a restructuring package.
The company’s focus will remain on large scale metal discoveries with a particular focus on nickel, copper, and cobalt. Although its operations are currently centred around Africa, the firm said it would be open to buying project in other areas of the world if a compelling opportunity arose.
For the time being, Power Metal said it will continue to complete ‘proactive exploration activities’ in Botswana, Cameroon, the DRC, and Tanzania. Since joining, Bell and Johnson have conducted a review of the organisation’s historical interests in these countries.
The business also took the opportunity to highlight the new project acquisitions Bell and Johnson have made since their appointments. In Botswana, the company has acquired a stake in a business called Kalahari Key Mineral Exploration, which owns a substantial nickel-copper-platinum group metal project called the Molopo Farms Complex (MFC). Meanwhile, the firm has also purchased a 25pc holding in a nickel project called Haneti in Tanzania. This is held though a joint venture with Katoro Gold (LSE:KAT) that gives Power Metal the right to increase its project stake to 35pc through a $25,000 payment by May next year.
Beyond its portfolio of interests, Power Metal also highlighted its improved financial position. Following a refinancing in February, the company has settled all historical creditor balances through either a cash or share settlement and now has ‘no material debt and a secure working capital position’.
Finally, Power Metal revealed that Johnson has become its chief executive with immediate effect following a management and technical advisory review. The business also said that it ‘recognises the need to add additional technical capabilities at senion management and consultancy level’.
In the below video, Johnson explains the rationale behind his role change as well as Power Metal’s ‘unique and exciting’ plans for the coming months.
