Power Metal Resources PLC (AIM:POW, OTCQB:POWMD) has agreed to a share option agreement with Tuscan Holding for the Tati Gold Project on the Tati Greenstone Belt ("TGB") near Francistown, Botswana.
Under the agreement, Power Metal will retain a 25% interest-free carried to production in Prospecting Licence 049/2022 (which covers the Cherished Hope Mine) and from which it is intended that TGR will become a material dividend paying entity from net cash flow generated from gold production.
Power Metal will retain the right to a 100% interest in other prospecting licences held by subsidiary TGR other than PL049/2022.
Through the deal, Tuscan will have 730 days to undertake prospecting, exploration and evaluation work at its own cost before deciding whether to take up the 75% option.
Sean Wade, Power Metal chief executive, commented: " Tati is a very important project for us and it is great to be able to take it forward with a partner, which is able to make such a substantial financial investment, giving Power shareholders a significant share of the upside without the additional cost.”