It is the second of four gold exploration properties that the company can acquire via exclusive option. Due diligence is continuing for the two remaining option properties.
The company highlighted that Coco East, located on the Schreiber-Hemlo Greenstone Belt, strengthens its landholding in Ontario.
“Coco East is sited upon the eastern end of the Big Duck Lake Porphyry intrusive which is associated with over twenty known gold and/or base metal occurrences including significant gold intersections which were drilled in a neighbouring property during 2017,” Paul Johnson, chief executive, noted in a statement.
“The property is also directly east of Superior Lake Resources’ Pick Lake / Winston Lake Zinc Project which is currently advancing towards a high grade zinc mine restart.”
To exercise the option the company is paying a total of C$60,000 (GBP34,000), comprising C$30,000 of cash and C$30,000 worth of Power Metals shares, priced at 3p each.
The project vendors retain a 2% net smelter royalty (NSR) for the project, though Power Metal is entitled to acquire half of the royalty for a C$500,000 cash payment.
Power Metal said it expects preliminary exploration work will include both remote sensing data interpretation and ground-based fieldwork, in order to identify and define targets for future drilling.