Druces Capital Markets team advises Power Metal Resources plc in a strategic financing deal securing £2 million with plans for a uranium-focused joint venture with ACAM LP.
Power Metal Resources, a leading exploration company focused on the development of its diverse mineral portfolio, has announced that it has entered into a legally binding subscription agreement with ACAM LP, pursuant to which it will invest £2 million in Power Metal Resources by way of a loan note, with attaching warrants. Druces played a pivotal role in advising Power Metal Resources throughout this transaction, marking yet another success for their valued client.
ACAM LP will purchase £2 million in loan notes, which yield 10%, to cover expenses related to a now-cancelled uranium energy exploration IPO. Additionally, Power Metal Resources has also entered into an eight-week exclusivity period and a non-binding term sheet with ACAM LP, with the intention of forming a uranium-focused joint venture involving the Company’s entire portfolio of uranium licences under which ACAM LP or an affiliate, will make an initial equity investment of £10 million into the Company’s wholly owned Canadian subsidiary company, Power Metal Resources Canada Inc. If completed, the proposed joint venture is expected to provide Power Metal Resources with exposure to at least five significant, high impact drilling programmes.
Druces Capital Markets team, provided comprehensive legal counsel to ensure the smooth facilitation of this significant venture. The team’s expertise in handling complex natural resource transactions was instrumental in navigating the intricacies of the deal, aligning both parties’ interests, and securing favourable terms for Power Metal Resources.
Mark Lamph, Senior Associate commented:
“This latest strategic financing deal and potential joint venture is a testament to the collaborative effort and strategic planning between Power Metal Resources and our team. We are thrilled to support their continued success and growth in the natural resources sector”.
The partnership with ACAM is expected to drive substantial progress in Power Metal Resources’ uranium exploration and development initiatives, leveraging the robust financial backing to unlock new opportunities and enhance shareholder value.
For more information contact:
Gerald Schlagman, Head of Business Development & Marketing.
Tel: 020 7216 5539
Mob: 07548 241054
Email: g.schlagman@druces.com
