Power Metal Resources PLC (AIM:POW) has signed a contract for local company Mindea to conduct the drilling on its first own-managed programme at Molopo Farms in Botswana.
About 2,600 metres of diamond drilling across an expected six drill holes is planned, with at least two scheduled for a newly identified conductor within the T1-6 target area.
Mindea will be paid on a part-cash, part-equity basis, with over 50% of the expected contract cost to be satisfied through the issue of up to 10mln shares at an issue price of 2.25p per share.
Paul Johnson, Power Metal's chief executive, said the drill programme comes only a matter of weeks after the T1-6 discovery, which lies immediately south of previous drill hole K1-6.
The electromagnetic conductor represents a high-priority target during the upcoming drilling programme, he said.
Johnson added that the few weeks prior to drilling commencement will be used for expanded geophysical surveys to confirm precision drill targeting at T1-6 and the follow-up surveys at targets T1-14, T1-3 and T2-3, where work is currently underway.