Power Metal Resources plc plans a capital reduction programme aimed at creating “sufficient distributable reserves” to return capital, through share buybacks or dividends, to its shareholders.
FLEXIBILITY
The company said that the “normal course” action was “highly desirable” to give it the “maximum flexibility” to return value to its investors.
Power Metal added: “The company will, accordingly, be seeking shareholder approval to cancel the entire amount standing to the credit of its share premium account as at the date when the relevant court order is made.
“Subject to confirmation by the court and the reduction of capital taking effect, the amount so cancelled will be credited to the company’s distributable reserves.
“This will improve the company’s distributable reserves position and will provide the company with flexibility to support, amongst other things, ordinary share buy-backs and the payment of dividends or other distributions to shareholders in the future.”
The company is yet to announce the date of a general meeting for shareholders to vote on the capital reduction.
Power Metal holds a natural resources exploration and project incubator portfolio with assets and interests in Africa, Australia, North America, the Middle East and the UK.
As at 14 April 2025, the company had 115,610,437 shares in issue.
Interactive Investors Services Ltd is the company’s largest shareholder with 17.46%, followed by Hargreaves Lansdown (15.9%) and Vidacos Ltd (12.42%).
Term Oil Inc, controlled by Sprott US Holdings Inc.’s president and chief executive officer Rick Rule, holds 4.07%.
Power Metal CEO Sean Wade holds approximately 1.25% of its issued share capital.
As at 31 August 2025, Mr Wade was listed as the company’s largest individual shareholder.