Power Metal Resources (LON: POW), the London listed exploration company, has seen its shares fall on Tuesday after it confirmed the sale of its Schreiber-Hemlo project interests in Ontario, Canada, to First Class Metals Ltd.
The sale is worth £1 million, payable through the issue of 333,334 new shares at £3 per share.
In addition, Power Metal will also invest C$50,000 (approximately £28,764) to acquire 9,588 additional First Class shares in First Class's pre-IPO financing currently underway at £3 per share.
Following the purchase, Power Metal will hold 342,922 shares or around 39.9% of First Class.
First Class is intending to list on a recognised stock exchange in London in late 2021.
James Knowles, Executive-director of First Class Metals Limited, commented: “First Class Metals is delighted to have executed this agreement with Power Metal Resources. The combination of our asset bases in the Hemlo Schreiber Greenbelt Belt offers great synergies in joining together two highly prospective exploration packages which are located in one of the best mining postcodes globally.”
Paul Johnson, CEO of Power Metal Resources, commented: “Power Metal is pleased to confirm the sale of its Schreiber-Hemlo interests into First Class which is currently preparing for a listing in London in the near future.
“First Class has itself assembled a strategic footprint of ground in the Schreiber-Hemlo region and has already secured a joint venture with Palladium One just to the north of Power Metal's Hemlo North Project.
“Bringing our Schreiber-Hemlo interests together with First Class will create a larger more diverse exploration package and on listing Power Metal will hold a strategic stake.”
Power Metal shares are down 1.28% at 1.925p following the announcement.
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