Power Metal Resources PLC (LON:POW) said an agreement has been reached for the acquisition of a 75% strategic interest in a UK special acquisition vehicle which is to acquire First Development Resources, an Australian private company.
FDR Australia holds a portfolio of copper-gold focused exploration interests in the Paterson Province in the eastern Pilbara Region of Western Australia.
The acquisition of FDR Australia will not be undertaken until the Ripon Hills Project has been successfully transferred into FDR Australia and a granted exploration licence has been received by FDR Australia in respect of the Wallal Project.
Paul Johnson, Power Metal’s CEO, said: “The acquisition announced today provides Power Metal with a strategic interest in exploration properties in the Paterson Province, Western Australia.
“This region has seen considerable interest in recent years following the Havieron discovery by Greatland Gold PLC and Winu discovery by Rio Tinto.
The level of interest in the region has intensified of late and the opportunity to secure a high-quality strategic licence footprint is diminishing. We needed to act to secure Power Metal’s seat at the “Paterson” table.
“Through this acquisition, we are creating a new strategic Australian copper-gold exploration vehicle with a view to listing this special acquisition vehicle on the London capital markets at the earliest opportunity.”