26 March 2024
Power Metal Resources
PLC
("Power Metal" or the
"Company")
Binding Earn-in Agreement Signed with
RIWAQ Al-Mawarid for Mining a Majority-Owned Subsidiary of EV
Metals Group plc
First Major Agreement for Exploration in
the Kingdom of Saudi Arabia
Power Metal Resources PLC (AIM:POW),
the London listed exploration company with a global project
portfolio, is pleased to announce the signing of a mutually binding
earn-in agreement with RIWAQ Al-Mawarid for Mining ("RIWAQ"), an
industrial and mining company based in the Kingdom of Saudi Arabia
("KSA"). RIWAQ is a special purpose subsidiary of EV Metals Group
plc ("EVM") focused on the development of the Saudi supply chain
for critical raw materials from the exploration, mining and
processing of minerals and metals in KSA.
HIGHLIGHTS:
RIWAQ is the sole beneficial owner
and the sole registered holder of 15 tenements in the Balthaga
Suite, approximately 400km east of Jeddah in the south of the
Arabian Shield, covering a total area of 1487.11km2 (the
"Tenements"), further details of which are set out
below.
11 of the tenements currently have
exploration licences granted, with the remaining four pending
grant.
13 of the tenements are considered
prospective for hard rock lithium, one for nickel sulphides and one
for a copper/molybdenum porphyry system.
RIWAQ has granted POW the right to
earn a 20% ownership interest in the Tenements ("First Interest")
by sole funding US$350,000 in expenditure on the Tenements within
12 months from the date of execution of the binding
agreement.
RIWAQ has granted POW the right to
earn a further 10% ownership interest in the Tenements
("Second Interest") by sole
funding US$150,000 on the Tenements within six months following
earning of the First Interest.
Following earning of the First
Interest or Second Interest, whichever occurs later, the Parties
have entered into a non-binding agreement to form a contributing
joint venture in proportion to their Tenement interests.
Sean Wade, Chief Executive
Officer of Power Metal Resources PLC commented:
"I
am delighted to be able to report the signing of this binding
agreement, our first major agreement for exploration activity in
KSA. This is a very exciting collection of tenements and we are
eagerly anticipating starting work with the RIWAQ team after
Ramadan and Eid al-Fitr.
Our intention is to form a long-term partnership with EVM,
RIWAQ's majority owner to provide upstream opportunities for EVM's
growing midstream processing operations. RIWAQ have a number of
other licences currently under application, highlighting further
growth opportunities beyond this initial
agreement.
These assets will reside within our majority-owned subsidiary
Power Arabia Ltd, which as announced on 12th March 2024,
is currently undergoing a pre-IPO financing round to fund
activities in the region with a view to a listing on
the London capital markets in due
course."
The
Tenements
License
Name
|
Deposit
Type
|
Order #
|
Total Area
km2
|
Granted /
Pending
|
Second Application
Fees
|
Balthaga
1
|
LCT
pegmatite
|
9166
|
98.42
|
Granted
|
1 June
2022
|
Balthaga
2
|
LCT
pegmatite
|
9176
|
99.54
|
Granted
|
1 June
2022
|
Balthaga
3
|
LCT
pegmatite
|
9177
|
98.46
|
Granted
|
1 June
2022
|
Balthaga
4
|
LCT
pegmatite
|
9178
|
99.92
|
Granted
|
1 June
2022
|
Balthaga
5
|
LCT
pegmatite
|
9180
|
99.52
|
Granted
|
1 June
2022
|
Balthaga
6
|
LCT
pegmatite
|
9181
|
99.73
|
Granted
|
1 June
2022
|
Balthaga
7
|
LCT
pegmatite
|
9183
|
99.36
|
Granted
|
1 June
2022
|
Balthaga
8
|
LCT
pegmatite
|
9185
|
99.83
|
Granted
|
1 June
2022
|
Balthaga
9
|
LCT
pegmatite
|
9186
|
99.78
|
Granted
|
1 June
2022
|
Balthaga
10
|
LCT
pegmatite
|
9187
|
99.46
|
Granted
|
1 June
2022
|
Balthaga
11
|
LCT
pegmatite
|
9220
|
98.93
|
Granted
|
1 June
2022
|
Balthaga
13
|
LCT
pegmatite
|
9222
|
99.44
|
Pending
|
1 June
2022
|
Balthaga
15
|
LCT
pegmatite
|
9224
|
99.44
|
Pending
|
1 June
2022
|
Al
Muwayh
|
Ni
Sulphide
|
12453
|
97.78
|
Pending
|
1 June
2022
|
Jabal
Hadan
|
Porphyry
Cu/Mo
|
10785
|
97.50
|
Pending
|
1 June
2022
|
This announcement contains inside
information for the purposes of Article 7 of the Market Abuse
Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.
For further information please
visit https://www.powermetalresources.com/ or
contact:
Power Metal Resources plc
|
|
Sean Wade (Chief Executive
Officer)
|
+44 (0) 20 3778 1396
|
|
|
SP Angel Corporate Finance (Nomad
and Joint Broker)
|
|
Ewan Leggat/Caroline Rowe/Harry
Davies-Ball
|
+44 (0) 20 3470 0470
|
|
|
SI Capital Limited (Joint
Broker)
|
|
Nick Emerson
|
+44 (0) 1483 413 500
|
|
|
First Equity Limited (Joint
Broker)
|
|
David Cockbill/Jason
Robertson
BlytheRay (PR Advisors)
Tim Blythe/Megan Ray
|
+44 (0) 20 7330 1883
+44 (0) 20 7138 3204
|
NOTES TO EDITORS
Power Metal Resources plc -
Background
Power Metal Resources
plc (LON:POW) is an AIM listed metals exploration company
which finances and manages global resource projects and is seeking
large scale metal discoveries.
The Company has a principal focus on
opportunities offering district scale potential across a global
portfolio including precious, base and strategic metal exploration
in North America, Africa and Australia.
Project interests range from
early-stage greenfield exploration to later-stage prospects
currently subject to drill programmes.
Power Metal will develop projects
internally or through strategic joint ventures until a project
becomes ready for disposal through outright sale or separate
listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development
work.
Value generated through disposals
will be deployed internally to drive the Company's growth or may be
returned to shareholders through share buy backs, dividends or
in-specie.
About EV
Metals Group plc
EV Metals
Group plc (EVM) is a global battery chemicals and technology
business committed to a clean energy future.
EVM is focused on the production of high purity
chemicals required in rechargeable batteries for electric vehicles
and renewable energy storage. The business model is based on the
integration of upstream (mining) and midstream (chemical refining)
supply chains for critical raw minerals from geopolitically
aligned sources to produce high purity battery chemicals vital to
the global energy transition.
Through the mine to refine value proposition, EVM
offers transparent and stable supplies of high purity battery
chemicals to growth markets including the Middle East, Europe and
North America. This will involve upstream mining and
production of intermediate products via participation and ownership
of mining mineral resources, facilitated by joint ventures and
long-term offtake agreements for midstream processing at its
planned chemical refining plant in the Kingdom of Saudi Arabia.
Its flagship, Lithium Chemicals Plant (LCP) in Yanbu
Industrial City in KSA, is being developed as a midstream hub for
diversification and geopolitical alignment of supply chains for
electric vehicle and battery cell manufacturers. The LCP is set to
play a critical role in the Kingdom's industrial diversification
efforts, featuring an initial nameplate capacity to produce 50,000
tpa of high purity Lithium Hydroxide Monohydrate (LHM), a crucial
chemical product expected to face significant deficits by 2030 due
to overwhelming global demand.
Incorporated in 2014, EVM is a private company
with operations in Western Australia, United Kingdom and
KSA.
For further information on EVM please
visit www.evmetalsgroup.com.