Power Metal Resources has made a major strategy shift into the toxic metals processing market with an agreement to buy 75% of GSA (Environmental).
Founded in 2003, GSAe specialises in metals extraction from secondary sources such as refinery residues, TiO2 waste, ash, and spent catalysts.
Processing these provides a sustainable source of strategic metals (including scandium, yttrium, other rare earth elements (REE), vanadium, nickel and niobium) for use in advanced manufacturing.
Power Metal is paying an initial consideration of £75,000 in shares with the maximum amount payable of £1 million based on performance milestones that include a year three annual profit of at least £1 million.
GSAe already has a memorandum of understanding in place with a major Saudi Arabian supplier of fly ash with several further discussions ongoing.
Sean Wade, Power Metal’s chief executive, said: "I am very excited to announce this proposed strategic acquisition for Power Metal.
“We have ambitious plans for this innovative business and believe that the extraction of strategic metals from waste products fits well with our strategy of seeking exposure to the critical metals needed for the global energy transition.
GSAe's proprietary technology has wide applications, including in Saudi Arabia, with its plentiful supply of metal-rich power station ash, he added.
“We believe this acquisition represents a significant step forward in our efforts to become a major operator in the region.
“Moreover, the directors believe the acquisition will also create a substantial revenue opportunity for Power Metal shareholders, which if successful, will allow us to fund our activities with less recourse to dilutive equity financing.”