Power Metal Resources PLC (AIM:POW, OTCQB:POWMD) has inked an agreement with Saudi Arabian mining firm Al Masane Al Kobra (AMAK) for the Qatan exploration licence.
It envisages Power Metal taking a 49% interest in Qatan, a set of exploration licences spanning a 72.247 square kilometre area of Saudi Arabia, near AMAK’s existing copper and zinc mining operations
Power Metal can earn this stake by spending $3 million on exploration.
The initial aim will be to advance the exploration of the project to establish a maiden mineral resource estimate.
"This is a significant development for Power Metal with a major Saudi Arabian mining company, marking a further milestone in the company's expansion into the Arabian Shield,” Power Metal chief executive Sean Wade said in a statement.
“We are delighted to have the support of AMAK and enter into this LOI with the hope of commencing work at the Qatan exploration licence in the coming months.
"We look forward to optimising the potential of Qatan and will provide updates to the market as our collective work progresses."
Geoff Day, AMAK chief executive, meanwhile, added: "AMAK is delighted to sign this LOI with the intention to partner with Power Metal Resources in fully defining the economic potential of its exploration assets in the most timely and efficient way.”