Last checked at 26 Mar 2024 07:00
26 March 2024
Power Metal Resources PLC
("Power Metal" or the "Company")
Binding Earn-in Agreement Signed with RIWAQ Al-Mawarid for Mining a Majority-Owned Subsidiary of EV Metals Group plc
First Major Agreement for Exploration in the Kingdom of Saudi Arabia
Power Metal Resources PLC (AIM:POW), the London listed exploration company with a global project portfolio, is pleased to announce the signing of a mutually binding earn-in agreement with RIWAQ Al-Mawarid for Mining ("RIWAQ"), an industrial and mining company based in the Kingdom of Saudi Arabia ("KSA"). RIWAQ is a special purpose subsidiary of EV Metals Group plc ("EVM") focused on the development of the Saudi supply chain for critical raw materials from the exploration, mining and processing of minerals and metals in KSA.
HIGHLIGHTS:
RIWAQ is the sole beneficial owner and the sole registered holder of 15 tenements in the Balthaga Suite, approximately 400km east of Jeddah in the south of the Arabian Shield, covering a total area of 1487.11km2 (the "Tenements"), further details of which are set out below.
11 of the tenements currently have exploration licences granted, with the remaining four pending grant.
13 of the tenements are considered prospective for hard rock lithium, one for nickel sulphides and one for a copper/molybdenum porphyry system.
RIWAQ has granted POW the right to earn a 20% ownership interest in the Tenements ("First Interest") by sole funding US$350,000 in expenditure on the Tenements within 12 months from the date of execution of the binding agreement.
RIWAQ has granted POW the right to earn a further 10% ownership interest in the Tenements ("Second Interest") by sole funding US$150,000 on the Tenements within six months following earning of the First Interest.
Following earning of the First Interest or Second Interest, whichever occurs later, the Parties have entered into a non-binding agreement to form a contributing joint venture in proportion to their Tenement interests.
Sean Wade, Chief Executive Officer of Power Metal Resources PLC commented:
"I am delighted to be able to report the signing of this binding agreement, our first major agreement for exploration activity in KSA. This is a very exciting collection of tenements and we are eagerly anticipating starting work with the RIWAQ team after Ramadan and Eid al-Fitr.
Our intention is to form a long-term partnership with EVM, RIWAQ's majority owner to provide upstream opportunities for EVM's growing midstream processing operations. RIWAQ have a number of other licences currently under application, highlighting further growth opportunities beyond this initial agreement.
These assets will reside within our majority-owned subsidiary Power Arabia Ltd, which as announced on 12th March 2024, is currently undergoing a pre-IPO financing round to fund activities in the region with a view to a listing on the London capital markets in due course."
The Tenements
License Name | Deposit Type | Order # | Total Area km2 | Granted / Pending | Second Application Fees |
Balthaga 1 | LCT pegmatite | 9166 | 98.42 | Granted | 1 June 2022 |
Balthaga 2 | LCT pegmatite | 9176 | 99.54 | Granted | 1 June 2022 |
Balthaga 3 | LCT pegmatite | 9177 | 98.46 | Granted | 1 June 2022 |
Balthaga 4 | LCT pegmatite | 9178 | 99.92 | Granted | 1 June 2022 |
Balthaga 5 | LCT pegmatite | 9180 | 99.52 | Granted | 1 June 2022 |
Balthaga 6 | LCT pegmatite | 9181 | 99.73 | Granted | 1 June 2022 |
Balthaga 7 | LCT pegmatite | 9183 | 99.36 | Granted | 1 June 2022 |
Balthaga 8 | LCT pegmatite | 9185 | 99.83 | Granted | 1 June 2022 |
Balthaga 9 | LCT pegmatite | 9186 | 99.78 | Granted | 1 June 2022 |
Balthaga 10 | LCT pegmatite | 9187 | 99.46 | Granted | 1 June 2022 |
Balthaga 11 | LCT pegmatite | 9220 | 98.93 | Granted | 1 June 2022 |
Balthaga 13 | LCT pegmatite | 9222 | 99.44 | Pending | 1 June 2022 |
Balthaga 15 | LCT pegmatite | 9224 | 99.44 | Pending | 1 June 2022 |
Al Muwayh | Ni Sulphide | 12453 | 97.78 | Pending | 1 June 2022 |
Jabal Hadan | Porphyry Cu/Mo | 10785 | 97.50 | Pending | 1 June 2022 |
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
Power Metal Resources plc | |
Sean Wade (Chief Executive Officer)
| +44 (0) 20 3778 1396 |
SP Angel Corporate Finance (Nomad and Joint Broker) | |
Ewan Leggat/Caroline Rowe/Harry Davies-Ball
| +44 (0) 20 3470 0470 |
SI Capital Limited (Joint Broker) | |
Nick Emerson
| +44 (0) 1483 413 500 |
First Equity Limited (Joint Broker) | |
David Cockbill/Jason Robertson
BlytheRay (PR Advisors) Tim Blythe/Megan Ray | +44 (0) 20 7330 1883
+44 (0) 20 7138 3204 |
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.
Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie.
About EV Metals Group plc
EV Metals Group plc (EVM) is a global battery chemicals and technology business committed to a clean energy future.
EVM is focused on the production of high purity chemicals required in rechargeable batteries for electric vehicles and renewable energy storage. The business model is based on the integration of upstream (mining) and midstream (chemical refining) supply chains for critical raw minerals from geopolitically aligned sources to produce high purity battery chemicals vital to the global energy transition. Through the mine to refine value proposition, EVM offers transparent and stable supplies of high purity battery chemicals to growth markets including the Middle East, Europe and North America. This will involve upstream mining and production of intermediate products via participation and ownership of mining mineral resources, facilitated by joint ventures and long-term offtake agreements for midstream processing at its planned chemical refining plant in the Kingdom of Saudi Arabia.
Its flagship, Lithium Chemicals Plant (LCP) in Yanbu Industrial City in KSA, is being developed as a midstream hub for diversification and geopolitical alignment of supply chains for electric vehicle and battery cell manufacturers. The LCP is set to play a critical role in the Kingdom's industrial diversification efforts, featuring an initial nameplate capacity to produce 50,000 tpa of high purity Lithium Hydroxide Monohydrate (LHM), a crucial chemical product expected to face significant deficits by 2030 due to overwhelming global demand.
Incorporated in 2014, EVM is a private company with operations in Western Australia, United Kingdom and KSA.
For further information on EVM please visit www.evmetalsgroup.com.