Power Metal Resources PLC to lift Fermi stake with £1.9M funding
UCAM plans a £1.3M warrant exercise, Power Metal will add £600K, and its Fermi interest is set to rise to 45 per cent.
Ines Halvorsen
Under a £1.9 million Phase 2 funding agreement announced Sept. 28, Power Metal Resources PLC LONPOW OTCMKTSPOWMF would raise its Fermi uranium venture interest to 45 per cent. UCAM is to provide £1.3 million through a warrant exercise, while Power Metal will add £600,000 from its own resources, the company's announcement said. UCAM, Power Metal's joint venture partner, would retain 55 per cent of Fermi Exploration Ltd.; the release gave no expiry for the revised ownership.
Power Metal's U.S. OTC shares OTCMKTSPOWMF last traded at US$0.12 as of 4 p.m. EDT on Sept. 25, before the agreement. The timed quote predates Monday's announcement, so it does not show a market reaction to the funding terms.
The money is earmarked for deeper drilling at the Perch River uranium property in Saskatchewan and a geophysical survey at Reitenbach, where airborne work was already under way on Sept. 28. The Sept. 28 announcement gave no start date for the drilling or date for the survey results. Its Fermi portfolio page locates the venture's properties in Saskatchewan and Labrador.
UCAM holds 13.3 million existing Power Metal warrants that were due to expire in 2029. Under the agreement, they are to be repriced at 10 pence and exercised immediately, bringing about £1.3 million into Power Metal before it is applied to the exploration campaign. UCAM would then own about 11 per cent of Power Metal itself, separate from its proposed 55 per cent stake in Fermi. The company's own £600,000 contribution completes the stated £1.9 million programme budget.
Drilling Will Test the Deeper Rapids Fault
A six-hole, 1,563-metre programme completed in July 2025 did not intersect primary uranium at Perch River. Subsequent sampling of that core found boron levels of 779 parts per million in hole PR25-01, along with radiogenic lead signatures that Power Metal traced across at least 400 metres of the Rapids Fault Structure. The company interprets those signals as indicators that a possible mineralised core lies deeper than the earlier holes, an interpretation the new drilling is meant to test.
Power Metal plans to target greater depths, the apex of the fault and the basin unconformity. The 2025 holes did not establish a deposit, and the £1.9 million budget is for exploration rather than mine construction.
"UCAM’s election to become a significant investor in the Company through early exercise of their warrants indicates broad support for the Company’s overall strategy," Power Metal chief executive Sean Wade said in the Sept. 28 announcement.
At Reitenbach, radon and soil surveys in 2024 and 2025 identified three priority target areas spanning 100 hectares, Power Metal said. The airborne survey now being flown will need processing before the venture can use it to select targets for fieldwork and possible drilling. The Sept. 28 announcement gave no date for Reitenbach drilling.
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The next funding step under the Sept. 28 agreement is UCAM's immediate exercise of the repriced warrants. In that announcement, Power Metal said it would update shareholders on Perch River drill targets and Reitenbach survey results, but gave no calendar date for either.
