Power Metal Resources PLC (AIM:POW) has announced a new earn-in agreement with RIWAQ Al-Mawarid for an exploration venture in the Kingdom of Saudi Arabia for exploration.
The company secured an interest in the Balthaga Suite, an area located approximately 400 kilometres east of Jeddah, spanning 15 tenements covering a total area of 1487.11 square kilometres.
AIM-quoted Power Metal can earn 20% of the project by spending US$350,000 on exploration within the next 12 months, then a further 10% interest by investing a further US$150,000 over the subsequent six months.
The tenements are seen as prospective for hard rock lithium and nickel sulphides, as well as a potential copper/molybdenum porphyry system.
“I am delighted to be able to report the signing of this binding agreement, our first major agreement for exploration activity in KSA,” Power Metal chief executive Sean Wade said in a statement.
“This is a very exciting collection of tenements and we are eagerly anticipating starting work with the RIWAQ team after Ramadan and Eid al-Fitr.”
He added: “Our intention is to form a long-term partnership with EVM, RIWAQ’s majority owner to provide upstream opportunities for EVM’s growing midstream processing operations.
“RIWAQ have a number of other licences currently under application, highlighting further growth opportunities beyond this initial agreement.”
The joint venture is under the Power Arabia subsidiary which is currently earmarked for a potential stock market listing in its own right, and it is currently undergoing a pre-IPO financing round.
Source: Proactive
