Power Metal Resources PLC (AIM:POW, OTCQB:POWMD) has announced that Aruma Resources has agreed to acquire its 20%-owned Australian associate NHMHA through an all-share deal.
Aruma will issue 26.5 million shares subject to a six-month lock-up, with a further 24.5 million on receipt of a drilling permit and another 28 million linked to drill success.
As well as crystallising the value of its holding, the deal gives exposure to uranium and copper exploration potential on the ASX, Power Metal said.
A 2% net smelter royalty will be paid to NHMHA shareholders over any minerals extracted and sold from the tenements.
NHMHA has three projects, Fiery Creek, Bortala (Mt Isa) and Wilan, two of which are in Queensland and one in South Australia.
Sean Wade, Power Metal’s chief executive, said: "I am very pleased to be able to report an important crystallisation event in respect of the NHMHA acquisition by Aruma Resources.
"This further demonstrates the value of our incubator model and how it serves to add value to shareholders. This transaction represents a continued streamlining of our portfolio and allows for concentration on our highest-value opportunities".