Power Metal Resources PLC (AIM:POW, OTCQB:POWMD) has reported the acquisition of a further uranium exploration project close to Canada's Athabasca Basin and announced an amendment to its agreement with Red Rock Resources PLC (AIM:RRR) regarding the sale of its 49.9% stake in New Ballarat Gold.
Under the revised agreement with RRR, £200,000 of the £250,000 cash sum owed has been paid. The remaining £50,000 and other amounts will now be due on 20 January 2025.
Additionally, £250,000 in convertible loan notes, initially maturing on 19 December 2024, will instead be repaid in cash by 19 March 2025. The terms also include the repricing of 166,666,667 RRR warrants to an exercise price of 0.041 pence.
Separately, Power Metal said it has acquired the Pardoe uranium project, a 9,593-hectare area located in northern Saskatchewan, through direct mineral claim staking, for an initial staking cost of C$6,117 covering a two-year term without a minimum spend requirement.
The property, situated near the Athabasca Basin, features over 33 kilometres of inferred geophysical conductors and multiple historical uranium occurrences but only limited fieldwork has been undertaken since 1979.
The Pardoe project includes five identified target areas based on historical geophysical and sediment analysis. Planned exploration in 2025 will focus on these targets, seeking to uncover basement-hosted uranium mineralisation similar to nearby deposits.
"It is very pleasing to be able to report another successful staking and the increase of our uranium footprint in and around the Athabasca Basin," said chief executive Sean Wade.
Located within a region of active exploration, the Pardoe property is bordered by projects operated by Fission Uranium Corp, Skyharbour Resources Ltd (TSX-V:SYH, OTCQB:SYHBF), and ALX Resources Corp (TSX-V:AL).
Nearby uranium deposits include ACKIO, operated by Baselode Energy, and Falcon Point, managed by Skyharbour Resources.
Extensions to the claim after the initial two years will require an annual spend of C$143,897.10.
Said Wade: "We look forward to updating further on this and our other high-impact exploration programmes in due course."