(Alliance News) - Power Metal Resources PLC on Wednesday said it has negotiated early completion of the Authier North earn-in to a 100% interest.
The metals exploration company focused on North America, Africa, and Australia, said it has satisfied the cash and equity payments stipulated in the earn-in agreement, as well as the first year exploration spend commitment.
The earn-in deal covers the Authier North and Duval East properties.
Due to this, it has agreed with Eagle Ridge Mining Ltd that the remaining commitments will be satisfied with the payment of CAD25,000 in cash, and the issue of CAD75,000 in equity to Eagle Ridge.
The firms also agreed that the second and third year exploration commitments of CAD50,000 and CAD100,000 will be waived.
Eagle Ridge currently has a 1.0% net smelter royalty, which will remain in place, but Power Metal said it will add a further 1.25% royalty, 0.5% of which can be bought back by the firm for CAD500,000.
Power Metal said the properties will be held by its UK subsidiary ION Battery Resources Ltd and its Canadian operating subsidiary.
Chief Executive Sean Wade said: "I am delighted to secure a 100% interest in the Authier North Project for Power Metal through this transaction which sees an expedited completion of the earn-in. Given the importance of lithium in the future growth and development of green technology globally, it is important to retain exposure to this metal.
"With the earn-in of Authier North now complete pending payment of consideration, we are also able to move forward with commercial plans for ION Battery Resources Ltd which will now hold this 100% interest and further on that to follow in due course."
Power Metal Resources shares rose 0.8% to 0.66 pence each on Wednesday afternoon in London.
By Harvey Dorset, Alliance News reporter
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Power Metal (POW)