Power Metal Resources PLC (AIM:POW) and its wholly-owned subsidiary Golden Metal Resources Ltd have exercised the option to acquire a 100% interest in the Pilot Mountain project in Nevada.
Golden Metal will acquire a 100% interest in Pilot Mountain, the consideration for which will be paid by Power Metal, and will principally comprise the issue of US$1.65mln of Power Metal shares at a price of 2.5p.
The 48mln new shares are equivalent to 3.59% of current Power Metal’s issued share capital.
Power Metal plans to spin-out Golden Metal into a new listing on the London capital markets.
Golden Metal will hold 100% interests in Pilot Mountain together with the Garfield and Stonewall projects.
Golden Metal will also hold the right to earn a 100% interest in the Golconda Summit project. All projects are located in Nevada, USA.
"My thanks to the Thor Mining team for their support during the due diligence process, and to the Power Metal and Golden Metal team members and advisors for their work,” said Paul Johnson, chief executive of Power Metal Resources.
“Pilot Mountain is a project I am familiar with having served on the board of Thor Mining PLC (AIM:THR, OTCQB:THORF, ASX:THR) between 2016 and 2018 when various work was undertaken at the project and much operational progress secured. With this important acquisition we have completed the portfolio of Golden Metal and can now move forward proactively with our listing plans.”