Power Metal inks deal to acquire stake in Oman copper block

25th Oct 2024 14:15

(Sharecast News) - Power Metal Resources announced on Friday that, alongside its subsidiary Power Arabia, it has formalised an agreement with Alara Resources and Awtad Copper to acquire a 12.5% stake in Oman's Block 8 copper concession.

The AIM-traded firm said that under the agreement, it would invest up to $0.74m in exploration activities, aligning with non-binding heads of terms established in September.

It said the legally-binding agreement was signed on 22 October, paving the way for the fieldwork to start immediately.

Block 8, previously explored for copper, holds considerable untapped geological potential, Power Metal explained.

It said Power Arabia's exploration programme would include four primary workstreams - stream and Wadi sampling across southern outcrop areas, orientation soil sampling to assess the efficiency of the Ionic Leach method, reconnaissance of the northern Block area covered by sediments, and trenching over copper targets like Al Mansur to test for mineralisation.

The trenching would use locally-sourced excavation equipment, aiming for a depth of two metres to assess cross-regional mineralised trends.

"I am delighted to be able to announce that another landmark deal in our growing Power Arabia business has been signed," said chief executive officer Sean Wade.

"We already have a team on the ground undertaking final logistical preparations.

"Moreover, we are continuing to build a local geological team to support this initial work, and for the rest of our expected project development in Oman."

At 1352 BST, shares in Power Metal Resources were down 4.26% at 13.5p.

Reporting by Josh White for Sharecast.com.