Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of Power Metal Resources (LON: POW) are gaining Wednesday following an update regarding the Wallal Project located in the prolific Paterson Region of Western Australia.
The Wallal Project is wholly owned by First Development Resources (FDR Australia). Power Metal announced a conditional acquisition of FDR Australia on April 28 this year.
Power Metal is working on completing the acquisition and a further announcement is expected in the near term. In addition, an application was submitted by FDR Australia to the Government of Western Australia Department of Mines, Industry Regulation and Safety for a government co-funded exploration drilling at the Wallal Project.
The funding is granted as part of Western Australia's Exploration Incentive Scheme (EIS). The EIS is a funding programme that offers up to a 50% refund for innovative exploration drilling projects undertaken within Western Australia.
If the DMR grants the co-funded exploration drilling program (with the EIS) with the Wallal Project application, the company will work with FDR Australia to drill the initial exploration program at the Wallal Project.
The drilling program will comprise approximately 2,500m of diamond drilling.
Paul Johnson, CEO of Power Metal Resources, commented: “In 2021 we have applied resources to build our knowledge of the Wallal Project and refine our understanding of the three large scale magnetic bullseye anomalies. That work has continuously yielded positive outcomes and we are particularly excited at the discovery potential the Wallal Project offers.
“Securing government co-funding for the Project further enhances our confidence. Aside from the benefit of co-funding to mitigate financial outlay, the co-funding further demonstrates the validity of our exploration plans in respect of this potentially company transforming opportunity.”
Power Metal Resources Shares are currently up 6.86% at 1.87p. Last week the company's shares spiked after it said it had identified new copper anomalies at its Garfield property in Nevada.
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