15th Dec 2022 14:35
(Alliance News) - Power Metal Resources PLC on Thursday announced a merger of its Wilan Project with a number of other Australian exploration interests.
The London-based exploration company with a global project portfolio said the merger will create a new Australian exploration company and provide Power Metal with exposure to the Mount Isa copper belt in Queensland, Australia.
The company said a heads-of-terms agreement had been signed to combine its 100% owned subsidiary Power Metal Resources Australia Pty Ltd with RAB Resources Pty Ltd and New Horizon Metals Pty Ltd.
Power Metals said the two companies hold a 100% interest in a portfolio of two granted exploration licences and four licence applications covering 1,507 square kilometres in the Mount Isa copper belt.
The new company, to be named Wilan Resources Pty Ltd, will acquire outright the shares of all three companies, and Power Metals will hold a 20% stake. The company will then begin a process for listing, targeting the second quarter of 2023.
Power Metals Chief Executive Officer Paul Johnson said: "Power Metal recognises the forward dynamic of copper as a commodity and the Merger will provide the Company with an immediate equity exposure to a strategic portfolio of exploration interests in the Mount Isa copper belt of Queensland, Australia."
"The Queensland Projects are targeting major copper discoveries within a world class copper belt and are situated close to ground held by a number of substantial mining companies," he said.
Power Metals share were down 4.1% trading at 1.39 pence per share on Thursday afternoon in London.
By Harvey Dorset, Alliance News reporter
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