Highlights
- Power Metal Resources Plc and its wholly owned subsidiary Golden Metal Resources Ltd have secured an option (the option) to acquire a 100% interest in Pilot Mountain.
- Power Metal will pay US$25 000 in cash to Thor Mining and issue to Thor Mining 500 000 new Power Metal ordinary shares of 0.1p (ordinary shares) at an issue price of 2.5p (£12 500 of ordinary shares), for a 60 day option period to complete due diligence and acquire the project.
- Upon option exercise, Power Metal will pay US$115 000 in cash to Thor Mining and US$1 650 000 payable through the issue to Thor of 48 118 920 ordinary shares at an issue price of 2.5p per share (initial consideration shares).
- In addition, Power Metal will issue to Thor 12.5 million warrants to subscribe for ordinary shares with an exercise price of 4p per ordinary share and life to expiry of three years.
- Furthermore, a US$500 000 milestone payment will become payable in ordinary shares, if Golden Metal publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years.
- Proceeds from the sale will be directed towards further exploration activities at the Company's copper and gold projects – Alford East, South Australia (SA) and Ragged Range, Western Australia (WA).
Nicole Galloway Warland, Managing Director of Thor Mining, commented: “We are very pleased to enter into an option agreement with Power Metals for the 100% sale of Pilot Mountain Project in Nevada, USA. This strategic divestment of a non-core asset is in line with our focus on copper and gold projects; with the acceleration of exploration activities towards exploration drilling activities at Ragged Range Project in the Pilbara WA, and progressing baseline studies for In-situ Recovery for copper and gold at Alford East Project, SA.”
