Power Metal Resources PLC - London-based exploration and development company - Agrees to buy the Selta project, located in the Northern Territory, Australia. The acquisition will be undertaken by Power Metal subsidiary First Development Resources Ltd, which will acquire URE Metals Pty Ltd, an Australian company which owns the Selta project.
First Development will acquire URE for initial consideration of up to AUD25,000 - about GBP13,465 - cash payable by the end of 2021 to cover historic expenses and GBP100,000 payable through the issue of 1.5 million First Development shares at a price of 6.67p each. Additional consideration will be due as each of the three licence applications are granted, with an additional amount payable of GBP400,000 - through the issue of up to 6.0 million First Development shares - should all licences be granted.
Current stock price: 1.72 pence, up 1.7%
Year-to-date change: down 37%
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Power Metal (POW)