Power Metal Resources PLC (AIM:POW, FRA:2M5) is selling its Schreiber-Hemlo project interests in Ontario, Canada to First Class Metals Ltd.
The consideration is £1mln, payable through the issue of 333,334 new ordinary shares at 300p each.
First Class is a UK private company with an existing portfolio of interests in the Schreiber-Hemlo region held through its Canadian operating subsidiary First Class Metals Inc.
Power Metal is also to invest C$50,000 to acquire 9,588 additional First Class shares in First Class's pre-IPO financing currently underway at 300p per share.
Power Metal's holding in First Class will then amount to 342,922 shares or around 39.9%.
"First Class Metals is delighted to have executed this agreement with Power Metal Resources,” said James Knowles, executive director of First Class Metals.
“The combination of our asset bases in the Hemlo Schreiber Greenbelt Belt offers great synergies in joining together two highly prospective exploration packages which are located in one of the best mining postcodes globally. Of particular interest is the combination of both companies adjoining interests in North Hemlo into what we now see to be a 'district sized' exploration block.”
The North Hemlo project is in close proximity to Palladium One’s high grade nickel-copper Tyko discovery to the east, and to Panther Metals Ltd (ASX:PNT) in the West.