Power Metal Resources PLC (LON:POW) accelerated its earn-in to the Silver Peak silver project in British Colombia, Canada.
The project includes the Eureka-Victoria silver mine, the first Crown-granted mineral property in British Colombia.
Power Metal holds a 30% interest in the project and is now forming a project holding company.
Power Metal agreed with its partners who hold the remaining 70% interest in Silver Peak to list the project holding company on a recognised stock exchange. The process has now commenced with tthe relevant paperwork being prepared.
Power Metal agreed to pay the C$108,952 remaining under the exploration earn-in commitment of C$250,000 into the new holding company to extinguish that earn-in requirement. This payment will be made from existing cash resources.
Power Metal has also elected to satisfy the final earn-in payment to secure its 30% project interest through the issue of 5,139,281 new ordinary shares of 0.1p at a price of 2.225p along with the issue of 2,569,641 warrants at 2.89p.
"Alongside its extensive exploration activities Power Metal is intent on generating material organic value from corporate work in respect of its portfolio of interests,” said Power Metals chief executive Paul Johnson.
“In just seven months since we engaged with Silver Peak we are now, with our partners, planning to move this project interest into its own independent listing. The level of interest in quality silver projects is considerable and we believe that material value can be generated for Power Metal through the listing of Silver Peak.”
Power Metal now has three project interests moving forward with planned IPOs: Silver Peak, Kanye Resources in Botswana, and the Australia gold joint venture with Red Rock Resources PLC (LON:RRR).