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(Alliance News) - Power Metal Resources PLC on Wednesday said it acquired the 4,222-hectare Doerksen Bay graphite project in Saskatchewan, Canada.
The London-based exploration company also said it formed a new wholly owned UK private subsidiary, ION Battery Resources Ltd, which is a private battery metals and minerals focused vehicle.
Power Metal will pay a total of GBP37,500 for the 100% acquisition of the Doerksen Bay project, which is payable through the issue of 2.5 million new shares at a price of 1.5 pence per share. The shares will be subject to a four-month lock-in from Wednesday.
The vendors of the project are a consortium led by local prospector Brian Fowler, who was previously the vendor of the Schreiber-Hemlo properties that Power Metal sold in exchange for a shareholding in First Class Metals PLC in September 2021, and the Reindeer Lake, Porter Lake and Old Woman Rapids uranium properties in July 2022.
Power Metal said the acquisition of Doerksen Bay brings a potential high-grade graphite opportunity into its portfolio. It will be held within the newly incorporated ION Battery Resources subsidiary, as will Power Metal's existing Authier North/Duval East and North Wind lithium projects.
"This acquisition enables us to create critical mass in specialist battery commodities, through the formation of a new holding company ION Battery Resources Ltd which we plan to hold Doerksen Bay, together with the company's two existing Canadian lithium interests," Chief Executive Paul Johnson said.
"We are continuing our desktop research for the project with a view to designing ground exploration to test the extremely high-grade graphite occurrences reported from the project as soon as weather conditions and team availability allows."
Shares in Power Metal were up 0.4% to 1.44p on Wednesday afternoon in London.
By Jaskeet Briah, Alliance News reporter
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