Power Metal Resources PLC (AIM:POW) said it can move forward more speedily with its 83.33% owned subsidiary First Development Resources (FDR UK) after it agreed to buy Pardoo Resources, the holding company that is currently holding projects in trust.
Power Metal has signed an agreement for the 100% acquisition of Pardoo Resources Pty Limited by FDR UK.
The projects held in trust are in the Paterson Province of Western Australia and include Wallal West 1 (E45/5853) a granted exploration licence which covers 96km2; Wallal West 2 (E45/5880) a granted exploration licence covering 86km2; and Braeside West (E45/5854) a granted exploration licence covering 137km2.
Power Metal chief executive Paul Johnson said: "It's great to be able to expedite the restructuring of the FDR UK interests and saves us some time and cost.
"This means we can move forward more expeditiously with this exciting venture. We continue the administrative processes for the planned listing of FDR UK on the UK capital markets."
For the acquisition, FDR UK will pay a consideration of AU$7,000 (£3,839) in cash to the vendors, who will also receive 300,000 new FDR UK ordinary shares at an issue price of 6.67 pence per share, which represents 0.66% of FDR UK issued share capital.
On completion of the acquisition, Pardoo will carry no outstanding liabilities.
The vendors and their professional licencing and geological teams will continue to provide ongoing assistance and work with FDR UK post completion of the acquisition.
Following completion of the transaction, Power Metal will hold 82.78% of FDR UK.
As part of an agreement in October, FDR UK has exercised an option to acquire E45/5088, known as Ripon Hills, for a payment of A$20,000 in shares priced at 2.75p and warrants at an exercise price of 4.5p to Great Sandy Pty Limited, current holder of the licence.
Tristan Pottas, chief executive of FDR UK, said progress was continuing on exploration and in respect of the planned London listing and "we intend to push on at pace."
"From a corporate perspective, the acquisition of Pardoo announced today enables us to further accelerate our business plans which is important. Also, our work to date has demonstrated the potential opportunity offered by Ripon Hills and we are delighted that the option has been exercised."