Power Metal Resources PLC (AIM:POW) has announced a merger of its Wilan Project, located in South Australia, with a number of other Australian exploration interests.
The merger will create a new Australian exploration company and provide Power Metal with exposure to the world-class Mount Isa copper belt located within Queensland, Australia
In a statement, Paul Johnson, chief executive officer of Power Metal Resources PLC commented: "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."
The Wilan Project is comprised of two exploration licences (ELs) which cover a total area of 1,994 square kilometres (km2), held within Power Metal Resources Australia Pty Ltd (POW Australia), which is a wholly-owned subsidiary of Power Metal Resources.
A heads-of-terms agreement has been signed to combine POW Australia (100% owner of the Wilan Project) with two companies holding a 100% interest in a portfolio of two granted exploration licences and four licence applications covering 1,507 km2 in the Mount Isa copper belt of Queensland, Australia. The Queensland Projects are held by two private Australian companies, RAB Resources Pty Ltd and New Horizon Metals Pty Ltd.
A new company will acquire outright the shares in POW Australia, RAB Resources and New Horizon. Following the merger Power Metal Resources will hold a 20% interest in this new company.
POW Australia will be renamed Wilan Resources Pty Ltd shortly after completion of the merger, enabling Power Metal to retain the POW Australia name.
Following the merger, the new company will then commence the process for a planned listing targeting Q2 2023, or the acquisition of the new company and its interests from an existing listed vehicle, subject to the agreement of all the merger parties.
Power Metal is an AIM-listed metals exploration company which finances and manages global resource projects and is seeking large-scale metal discoveries.
The company has a principal focus on opportunities offering district-scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Separately, Power Metal announced plans to test a larger portion of the 8km gold-in-soil anomaly at the Tati gold project in Botswana.
The plans also include the first testing of gold at depth to add to the near-surface mineralisation already identified.