Power Metal Resources has inked an agreement to sell its remaining stake in Guardian Metal Resources for £13.6 million in cash.
The London-listed exploration company sold its stake to an investment fund managed by Duquesne Family Office LLC to wrap up the realisation of Guardian Metals for a whopping 11.6x return.
The sale represents a significant cash injection for Power Metal Resource, which will use the cash to further develop the rest of its early-stage mining portfolio.
“I am very pleased to be able to announce that we have agreed terms to exit our position in GMET after what has been an enormously successful investment for Power Metal, and one that has generated very considerable shareholder value,” said Sean Wade, Chief Executive Officer of Power Metal Resources.
Our original investment in GMET 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.
I look forward to further updating shareholders, as appropriate, on the destination of some of these funds as we continue to build on our proven and successful business model.”
Power Metal shares were 8% higher in early trade on Tuesday, valuing the company at just £17m despite now having an additional £13m cash in the bank.