Power Metal Resources PLC (AIM:POW, OTCQB:POWMD) has reached an agreement for the disposal of its 49.9% interest in New Ballarat Gold Corporation (NBGC), the owner of the Red Rock Australasia joint venture exploring for gold in Victoria and South Australia.
Terms of the sale will see Power Metal receive 166.7 million new shares in JV partner Red Rock Resources (RRR) giving it a 3.87% stake.
Power Metal has also been issued with a £250,000 convertible loan note by its partner plus 100 million warrants exercisable into RRR ordinary shares for three years at 0.15p per share.