Power Metal Resources plc has agreed to sell its remaining shares in its spin-out Guardian Metal Resources plc for £13,584,904 cash in an “enormously successful investment”.
FIREPOWER
The sale and purchase agreement of 24,699,825 ordinary shares of £0.001 each, represents a price of 55p per sale share.
The transaction with an investment fund managed by New York City-based Duquesne Family Office LLC, which now holds a 14.75% stake in Guardian, is expected to complete in the coming weeks.
The sale follows that of 3.03% of Power Metal’s shares in Guardian on 14 August.
Chief executive officer Sean Wade said that Guardian had generated “very considerable shareholder value”.
“Our original investment in GMET [Guardian] was £1,935,275.
“Over the course of two disposals, we will have realised £22,809,988 before costs, a return of 11.8 times.
“It represents a strong validation of our incubator model and gives us considerable firepower now to pursue other opportunities, a number of which have presented themselves to us in recent weeks.”
SUNRISE
From 2021 to 2022, Power Metal acquired licences in Nevada, including the Pilot Mountain tungsten, Garfield copper-gold and Stonewall gold projects, held within Guardian, previously named Golden Metal Resources.
Sunrise Resources plc, which sold Garfield and Stonewall in 2021 to Power Metal, remains the only British exploration and development company with an interest in Guardian.
Sunrise retains a 2% net smelter royalty interest in each of the projects.