Power Metal Resources (LON: POW) have jumped on Wednesday after the company said it has agreed on a deal to acquire a 75% strategic interest in a UK special acquisition vehicle which is to acquire First Development Resources Limited (FDR Australia), an Australian private company.
FDR Australia holds a portfolio of copper-gold focused exploration interests in the Paterson Province in the eastern Pilbara region of Western Australia.
The acquisition of FDR Australia will not go through until the Ripon Hills Project has been successfully transferred into FDR Australia and a granted exploration licence has been received by the company in respect of the Wallal Project.
Power Metal said they are creating a new strategic copper-gold exploration vehicle and plan to list it on the London capital markets at the earliest opportunity.
“The acquisition announced today provides Power Metal with a strategic interest in exploration properties in the Paterson Province, Western Australia. This region has seen considerable interest in recent years following the Havieron discovery by Greatland Gold plc and Winu discovery by Rio Tinto,” said Paul Johnson, CEO of Power Metal resources.
“The level of interest in the region has intensified of late and the opportunity to secure a high-quality strategic licence footprint is diminishing. We needed to act to secure Power Metal’s seat at the “Paterson” table.
“We now have a seat at that table, but this is Power Metal and our policy is to carve out innovative pathways for value generation with each new transaction,” added Johnson.
Power Metal Resources share price is currently trading 9.22% above Tuesday’s close at 2.51p.
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