22nd Jul 2020 11:18
(Alliance News) - Power Metal Resources PLC on Wednesday said it has agreed to the terms to acquire an option to earn-in to the Alamo gold project in west-central Arizona.
The metals exploration and development company said the option provides the right to earn up to a 75% interest in the Alamo project.
Power Metal will pay GBP48,000 upfront and then another GBP160,000 upon earning into the 75% ownership. Additional expenses include a year-one property payment and exploration spend of around GBP119,530.
A newly appointed North American gold advisory board will be guiding the project.
Chief Executive Paul Johnson said: "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."
Power Metal's aim is to investigate the source of the nugget gold mineralisation and the potential for a large mineralised gold system.
"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," Johnson said.
He added: "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."
Company shares were up 24% at 0.87 pence each on Wednesday morning in London.
By Greg Roxburgh; [email protected]
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