24th Jan 2022 14:24
Power Metal Resources PLC - London-based metals exploration company with projects focused in Africa, Australia and North America - Completes acquisition of 100% of Pilot Mountain tungsten project via its subsidiary Golden Metal Resources Ltd's new wholly-owned unit Golden Metal Resources Australia Pty Ltd. Says USD115,000 in cash was paid to Thor Mining PLC, as well USD1.7 million in the form of 48.1 million new shares issued to Thor Mining at the price of 2.5 pence each.
The agreement reached today eliminated a previous tail benefit for USD500,000 of new shares to be issued to Thor, if Golden Metal UK achieved pre-agreed targets within two years. Instead, Power Metal has paid USD50,000 in cash, and issued four million new shares worth USD100,000 to Thor Mining, at a price of 2.5 per share.
"Our ongoing technical work in respect of the Pilot Mountain project has increasingly demonstrated significant upside potential within the existing 2018 mineral resource estimate and we considered there was a reasonable likelihood that the tail benefit would become payable within the 2 year payment period. The early clearance of the tail benefit also frees Power Metal from any future contractual financial encumbrance in respect of the project," said CEO Paul Johnson.
Power Metal current stock price: 1.35 pence, down 5.5% on Monday
12-month change: down 52%
Thor Mining current stock price: 0.62p, down 1.6% on Monday
12-month change: down 34%
By Elizabeth Winter; [email protected]
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