(Alliance News) - Power Metal Resources PLC on Friday said the company's Canadian subsidiary Power Metal Resources Canada has signed an earn-in agreement through which it may acquire a 100% interest in two Canadian lithium pegmatite exploration properties.
London-based Power Metal Resources is a metals exploration and development company seeking large scale metal discoveries.
Power Metal Canada may earn-in to a full interest in two lithium exploration properties, Authier North and Duval East, situated in the prolific Val D'Or mining camp in Quebec, Canada.
Quebec is recognised as the sixth highest ranking mining jurisdiction in the world, in the Investment Attractiveness Index in the 2020 Fraser Institute - Annual Survey of Mining Companies. Quebec provides incentives for exploration and development companies within the province which include significant tax credits on all eligible exploration expenses incurred within the province on a annual basis.
Should all payments in the earn-in terms be made, the total cost to Power Metal, on behalf of Power Metal Canada, would be GBP243,000 over a maximum three-year period, and following that expenditure Power Metal Canada will hold a 100% interest in the properties.
"What matters most is the quality of opportunity, which we think we have with these two earn-in properties. One property is situated adjacent to a major lithium Reserve that offers significant exploration potential and the second property is interpreted to host the open eastward extension of a historical lithium deposit delineated in the 1950s, which holds potential subject to further drilling," said Chief Executive Paul Johnson.
Shares in Power Metal remained flat at 2.08 pence each in London on Friday afternoon.
By Amrit Sahota; newsroom@alliancenews.com
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Power Metal (POW)