Power Metal said it was accelerating its earn-in and forming a new company for the Silver Peak project, which includes the Eureka-Victoria silver mine, in British Columbia, Canada.
The junior miner retains its 30% interest through the new Canadian company, which will hold a 100% interest in the property, and its partners hold the remaining 70%.
The process has started to list the holding company on a recognised stock exchange.
Power Metal has agreed to pay CA$108,952 (£62,313) remaining under the exploration earn-in commitment of CA$250,000 into the new Canadian company to extinguish that earn-in requirement.
The payment will be made from existing cash resources.
Power Metal has also elected to satisfy the final earn-in payment to secure its 30% project interest.
This is through the issue of 5,139,281 new ordinary shares of 0.1p in the company (ordinary shares) at a price of 2.225p and the issue of 2,569,641 warrants to subscribe for new ordinary shares at an exercise price of 2.89p and with a three-year life to expiry from today’s date.
The junior metals miner now has three projects in line for IPOs including Silver Peak; Kanye Resources – a copper and rare earth elements strategic joint venture with Kavango Resources in Botswana; and Red Rock Australasia Pty Ltd – the gold joint venture with Red Rock Resources plc in Australia.