Power Metal Resources backs Apex Royalties with £4 million – here’s why it matters
Power Metal Resources has signed a binding subscription agreement to invest £4.0 million in Apex Royalties Limited, a private, diversified mining royalty company. The investment comes alongside other investors in a fundraising expected to exceed US$10.0 million, valuing Apex at approximately £24.0 million on a pre-new money basis.
Proceeds will help Apex acquire a royalty over the Pilot Mountain tungsten project, complete an option payment on a royalty over the Wuudagu Bauxite project, and fund further royalty deals. For Power Metal shareholders, this is a move into cash-flow potential without taking on mine-building risk.
Who is Apex Royalties and why Power Metal is leaning in
Apex was formed in late 2024 and has quickly assembled five royalties spanning gold, tin, bauxite and tungsten. The board includes former directors and founder shareholders of Trident Royalties, which was built from scratch into a 22-royalty portfolio and sold for £144 million in cash to Deterra Royalties. That track record matters in the royalty space, where deal flow, discipline and operator relationships drive value.
The portfolio is heavily weighted to OECD jurisdictions and includes exposure to projects operated by recognised names such as GMET (Guardian Metal Resources), VBX Limited and Xingye Silver & Tin.
Why a royalty exposure can be attractive for retail investors
A royalty is a slice of project revenue or metal sales from a mine, paid to the royalty holder. A gross revenue royalty (GRR) is calculated on revenues at the top line, while a net smelter return (NSR) is based on proceeds after certain processing and transport costs. Royalty holders are not responsible for mine capex or operating costs, so they get commodity exposure with lower operating risk than an equity interest in a single project.
Power Metal’s CEO points to this as non-dilutive exposure to assets like Pilot Mountain and Tempiute. In plain English, Power Metal gets leverage to these projects’ progress through Apex’s royalties without having to fund the mines themselves.
Deal terms and use of proceeds
| Power Metal investment | £4.0 million (approximately US$5.3 million) |
| Apex pre-new money valuation | Approximately £24.0 million (approximately US$32.0 million) |
| Apex fundraising size | Expected to raise gross proceeds in excess of US$10.0 million |
| Portfolio breadth | Five royalties across gold, tin, bauxite and tungsten |
| Key jurisdictions | Canada, Morocco, Australia, USA |
| Exchange rate used | GBP1 = 1.335 |
The exact percentage stake that Power Metal will hold in Apex is not disclosed. Funds will help Apex complete the Pilot Mountain royalty acquisition, pay the remaining option amount on Wuudagu, and pursue further deals.
Apex Royalties portfolio – asset-by-asset snapshot
1) Whale Cove Gold, Nunavut, Canada – 1.0% GRR
Apex holds a 1.0% gross revenue royalty over BG Gold’s Whale Cove project, covering a large 841 km² package. The flagship Vickers deposit has a NI 43-101 Mineral Resource of 2.4 million ounces of gold: Measured & Indicated 1.53 million ounces at 2.0 g/t, plus Inferred 0.91 million ounces at 1.77 g/t. The royalty spans BG Gold’s existing land, giving upside to district-scale exploration. Note: the 1.0% GRR assumes exercise of an option to purchase an additional 0.25% GRR.
2) Achmmach Tin, Morocco – 1.2% GRR
Operated by Xingye Silver & Tin (China’s second largest tin producer following its takeover of Atlantic Tin Limited), Achmmach is backed by a JORC Mineral Resource of 39.1 mt at 0.55% tin. The most recent development plan envisaged a 17-year mine life producing 3.7k tpa tin at first quartile operating costs with US$47 million capex (per a 2024 scoping study). Apex’s royalty covers a prospective land position, adding exploration upside.
3) Wuudagu Bauxite, Western Australia – 1.0% GRR
VBX Limited is progressing feasibility work following a positive 2024 pre-feasibility study pointing to 3.5 mtpa of low-silica bauxite over a 10-year life with low capex of A$125 million and first quartile costs. The project has a JORC Ore Reserve of 59 mt, with only 48% of tenements drilled. Apex’s 1.0% GRR becomes effective once a US$3.5 million payment is made following the close of the Apex fundraising.
4) Tempiute Tungsten, Nevada, USA – 1.5% NSR
Tempiute (also known as Emerson) was once one of the largest tungsten mines in the US. GMET is advancing the project, which includes historic high-grade resources and existing infrastructure, plus under-explored ground added since optioning the asset. Apex’s 1.5% net smelter royalty is subject to a 0.75% buy-back right.
5) Pilot Mountain Tungsten, Nevada, USA – 2% GRR
Considered one of the largest undeveloped tungsten projects in the US, Pilot Mountain is in pre-feasibility with drilling to grow the 12.5 mt at 0.27% WO3 Mineral Resource. The ground is prospective for scale growth and potential co-products including silver, copper and zinc. In early 2025, GMET received a US Department of Defense grant of US$6.2 million to advance Pilot Mountain towards construction. Apex’s fundraising will help finance part of the consideration for this royalty acquisition.
Why this is potentially positive for Power Metal shareholders
- Diversification into cash-flow potential: Royalties can generate income if and when projects enter production, with lower sustaining cost exposure versus equity in a single mine.
- Experienced royalty team: Apex’s board includes Trident Royalties’ former leadership, which previously delivered a £144 million cash sale to Deterra Royalties.
- Commodity mix aligned with strategic themes: Tungsten and bauxite are critical materials, while gold and tin add cyclical and defensive balance.
- Jurisdictional tilt to OECD countries: Canada, Australia and the US reduce geopolitical risk compared with many mining regions.
Key drawbacks, risks and what to watch next
- Stake size not disclosed: Without the percentage holding, it is hard to gauge Power Metal’s influence and look-through exposure to Apex’s future cash flows.
- Execution milestones ahead: The Pilot Mountain royalty acquisition and Wuudagu royalty option require funding completion and payments, so there are closing risks.
- Early-stage cash flow timing: None of the assets are stated to be producing yet, so near-term income is not disclosed.
- Buy-back rights can cap upside: The 1.5% NSR at Tempiute carries a 0.75% buy-back right, which could reduce future revenue.
- Private company exposure: Apex is private, and an exit pathway or listing plan is not disclosed, which may limit liquidity.
- Commodity and permitting risk: Project economics depend on commodity prices and successful permitting across multiple jurisdictions.
- Disclosure limits: Apex has not yet filed statutory accounts, so there are no Schedule 4c disclosures under AIM Rule 12.
My take: sensible leverage to an emerging royalty platform
This looks like a strategically coherent move by Power Metal. £4.0 million buys a meaningful early position in a royalty company with credible leadership and a portfolio already spanning five advanced exploration to development-stage assets. The focus on OECD jurisdictions and critical minerals is a plus, and GMET’s US$6.2 million DoD grant at Pilot Mountain is a useful external validation.
On the flip side, the lack of a disclosed percentage holding, the need to finish the royalty acquisitions, and the early-stage nature of expected cash flows temper enthusiasm. As ever with royalties, the proof is in building scale and getting one or two assets to production. Near-term, watch for completion of the fundraising, confirmation of the Wuudagu US$3.5 million payment, closing of the Pilot Mountain royalty acquisition, and any updates from BG Gold, VBX, GMET and Achmmach’s operator.
Overall, I view this as a positive portfolio addition that fits Power Metal’s project-incubator DNA, offering growth potential without the heavy lift of mine development. Delivery against the next set of milestones will be key to unlocking value.
