Power Metal Resources PLC and its fully-owned Saudi division, Power Arabia Ltd, are on track for significant progress.
Investors recently learned that Power Arabia is nearing the completion of negotiations for multiple binding memoranda of understanding, aiming to establish joint ventures on existing exploration licenses.
If these agreements are successfully finalized, initial exploration activities are anticipated to start in April, after the Ramadan and Eid festivities.
Highlights:
· Memorandum of Understanding (“MoU”) signed with Ministry of Investment of the Kingdom of Saudi Arabia (“MISA”) at Future Minerals Forum, as announced on 12 January 2024
· Power Arabia has been established to encompass all of POW’s activities across the Arabian Gulf (the “region”). This could also include projects outside the Gulf in joint venture with entities domiciled within the region
· Several binding MoUs for potential joint ventures on existing exploration licences are currently in the final stage of negotiation and, assuming execution of one or more of these, initial groundwork is expected to commence in April, after Ramadan and Eid al-Fitr.
· Power Arabia 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
· Conversations are progressing with investors, both from the Gulf and internationally, who have indicated significant interest in a regionally focused investment vehicle
Concurrently, Power Arabia has initiated a pre-IPO funding round to bolster its regional operations and lay the groundwork for an eventual listing on the London market.
This fundraising effort has garnered substantial interest from investors both in the Gulf region and globally, underscoring the appeal of a regionally dedicated investment entity, according to Power Metal.
CEO Sean Wade commented, “While we can’t guarantee a successful outcome for either the pre-IPO financing or the London market listing of Power Arabia, we’re highly optimistic about introducing this IPO in London. We’re confident that our strategy will be effectively replicated throughout the Arabian Gulf, bringing significant value to our shareholders.”
Wade also noted that, as with prior deals, Power Metals plans to maintain a considerable stake in Power Arabia. This strategy is designed to offer its shareholders considerable benefits from future discoveries, without diluting their current shareholding in the company.
