It appears to be all systems go for Power Metal Resources Plc (AIM:POW) and its wholly-owned Saudi subsidiary, Power Arabia Ltd.
In an update, investors were told the latter is in the final stages of negotiating 'several' binding memoranda of understanding for potential joint ventures on existing exploration licences.
Subject to the successful execution of one or more of these agreements, initial exploration activities are slated to begin in April, following the conclusion of the Ramadan and Eid celebrations.
At the same time, Power Arabia has embarked on a pre-IPO financing round aimed at supporting its regional activities and paving the way for a future listing in London.
The initiative has attracted considerable interest from investors within the Gulf and internationally, highlighting the potential of a regionally focused investment vehicle, Power Metal said.
Its CEO, Sean Wade, added: "Whilst there is never complete certainty of a successful outcome, of either the pre-IPO financing or the listing of Power Arabia on the London capital markets, we are very excited to bring this IPO to London and strongly believe that our model will be successfully replicated across the Arabian Gulf region and will deliver significant value to shareholders."
Wade said that, in common with previous transactions, Power Metals is expected to retain a significant shareholding in Power Arabia, giving its shareholders 'substantial upside potential from discoveries', but without diluting their shareholding in the business.