Power Metal Resources PLC (AIM:POW) said its subsidiary First Development Resources Ltd (FDR), in which it holds 82.78%, has raised £1.125mln in pre-initial public offering (IPO) financing, valuing the unit at about £4.125mln.
FDR, which is focussed on exploration opportunities in Australia, plans to list in London in the third quarter of this year.
"The pre-IPO financing provides FDR with the necessary working capital to confidently push ahead with business operations including its planned listing on the London capital markets,” said First Development chief executive Tristan Pottas.
“The FDR business has been built around Australian exploration and notably, what we believe are high impact opportunities in Western Australia's Paterson Province and the Northern Territory.”
FDR owns three highly prospective copper-gold projects - Wallal, Braeside West and Ripon Hills - in the Paterson Province and recently acquired the Selta project in the Northern Territory. Selta is located in an area considered highly prospective for uranium and rare earth element mineralisation.
FDR raised the financing through the issue of 16.87mln new shares at a price of 6.67p each, which will represent 27.14% of the issued share capital on completion of the financing. Half of the monies will be payable to FDR by 10 June and the remainder on completion by 10 July.
Power Metal has subscribed for £75,000 of the financing, equivalent to 1.12mln shares, which would give it a 62.12% shareholding in FDR valued at about £2.562mln.
Power Metal’s chief executive Paul Johnson has subscribed for £50,000 in the financing.