ACAM LP has reached an agreement to acquire 23.45% stake in Guardian Metal Resources PLC (AIM:GMET) from Power Metal Resources plc (AIM:POW) £9.22 million on February 11, 2025. Power Metal has reached an agreement in principle with UCAM Ltd wherein it is intended that UCAM Ltd will purchase from Power Metal 29,758,334 shares in GMET, and warrants granted over 986,352 ordinary shares in GMET of £0.01 each, for a total cash consideration of £9.22 million. Completion of the Proposed Transaction is subject to UCAM completing a fundraising transaction, certain administrative processes and a legally binding Sale and Purchase Agreement being entered into between Power Metal and UCAM.
It is currently intended that the SPA will be entered into within 10 business days however there can be no certainty that the SPA will be entered into within this timeframe, or at all, and that the Proposed Transaction will complete on the terms set out above. Should the Proposed Transaction be concluded as envisaged, Power Metal's resultant holding in GMET will be 25,169,772 shares, representing approximately 19.2% of GMET's issued share capital. The proceeds will be used to redeem the £2 million loan note issued to ACAM LP on 10 June 2024, with accrued interest, and for general corporate purposes.
Tamesis Partners LLP act as financial advisor for Power Metal Resources PLC. Nick Heap of Haynes and Boone acted as legal advisor to Power Metal Resources.
