Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following the successful completion of project due diligence, Power Metal has agreed terms to acquire an option (the “Option”) to earn-in to the Alamo Gold Project (the “Project”) in west-central Arizona, USA (the “Agreement”).
CHIEF EXECUTIVE OFFICER’S STATEMENT
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented “This is a major step forward for Power Metal, giving the Company an opportunity to expand its gold project portfolio and starting a journey into North American gold interests just as the gold sector is showing exciting strength around the world.
We will start exploration soon and begin delivering project news to our shareholders in the near term. We are seeking a major gold discovery and we need to get on with the exploration work as soon as possible.
To take this step into North America would be bold for a junior exploration company out of London, but we are working with enormously experienced partners and with the assurance of their experience captured in the form of a newly created North American Gold Advisory Committee.
Power Metal advances at pace and we look forward to bringing more updates from the Alamo Gold Project and North America, in the near term.”
The original announcement in respect of the transaction was released on 3 December 2019 and can be viewed through the following link:
Since the above December 2019 announcement Power Metal undertook a site visit in January 2020 and agreed extensions to the original due diligence period to provide the parties more flexibility in the face of the COVID-19 disruption.
The site visit in January was successful with nugget gold being recovered from shallow trenches on site and a fuller understanding of the Project and its potential being secured from on-site inspection and discussions with the operating team members on the ground.
During the visit it was also agreed that additional claims should be pegged to build the Project footprint immediately and ensure sufficient ground was held to cover the potentially mineralised system. Those claims were pegged and registered with the Bureau of Land Management and County authority.
Following discussions with all parties to the transaction the original terms agreed in December 2019 have been adjusted and the final agreed terms are detailed below. Power Metal is grateful to all parties who have been supportive and commercial at all stages.
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