The Alamo project comprises some 340 acres see as being prospective for gold, with native gold nuggets observed near surface in multiple locations. Additionally, the region is noted to be prospective for precious and base metals.
With the agreement, the company has secured the right to acquire a 60% interest in the project.
"POW is making great progress in Africa across its power metal projects, and shareholders should expect further updates in the near term covering operational and corporate activities,” said Paul Johnson, chief executive.
“As a company we have remained open to the review of new additional opportunities and stated we may move ahead with compelling projects, including new jurisdictions outside Africa and in new commodities.”
He added: “The Alamo project provides access to a package of claims with notable native gold nugget finds at surface, and a geological backdrop that encourages us to search for the source of the nuggets in the bedrock where, it is postulated, the potential for a large gold system exists.
“The project has a rich story and one in which we are excited to have the opportunity to play a part.”