Power Metal Seals Pilot Mountain Tungsten Project Acquisition

Power Metal Resources PLC, a London-based metals exploration company with projects focused on Africa, Australia, and North America - through its subsidiary Golden Metal Resources Ltd's new wholly-owned company Golden Metal Resources Australia Pty Ltd has completed the acquisition of 100% of the Pilot Mountain Tungsten Project in Nevada, USA.

The company said it has paid $115,000 in cash to Thor Mining PLC and $1.7 million in the form of 48.1 million new shares issued to Thor Mining at 2.5 pence per share.

The current agreement between the parties eliminates the previous tail payment of $500,000 in new shares to be issued to Thor Mining if Golden Metal UK achieves the pre-agreed targets within two years. Instead, Power Metal has paid $50,000 in cash plus issued 4 million new shares to Thor Mining at $2.50 per share, valued at $100,000.

"The technical work we are doing on the Pilot Mountain project is increasingly showing that the mine has significant upside potential and we are well-positioned to make the final payment over the 2 year payment period. said Paul Johnson, CEO.

Thor acquired the Pilot Mountain tungsten project in 2014. The project includes a number of deposits within a 3 km radius. Of these, the Desert wolframite has a JORC-compliant resource, while the other deposits have extensive mineralization supported by historical drilling.

The Pilot Mountain Project comprises four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. The Desert scheelite indicated and inferred resources comprise 9.9 million tonnes of JORC compliant 0.26% WO3, 0.14% copper and 19.4 g/t (grams per tonne) silver in 2012, announced on May 22, 2017.

Power Metal's primary strategic objective is to discover large-scale metal deposits with a focus on cobalt, copper, gold, uranium, lithium, rare metals, nickel, polymetallic, and silver. It holds active projects in Australia, Botswana, Canada, the Democratic Republic of Congo, Tanzania and the United States.

• < Prev
• Next >