Power Metal Resources plc has acquired 100% of First Development Resources Pty Ltd (FDR Australia) following the grant of the final copper-gold licence in the Paterson Region of Western Australia.
REVISED AGREEMENT
Earlier in 2021, the company made an offer, conditional on the granting of the final licence in the Wallal project, for 75% of the Australian company.
Wallal West 1-E45/5853 was granted today and Power Metal also signed a revised, unconditional and binding agreement to acquire 100% of FDR Australia.
FDR Australia will be acquired outright by First Development Resources Ltd, a UK company and wholly owned subsidiary of Power Metal (FDR UK) which plans to list in London during Q1 2022.
EXPANSION
The company also announced it was in “late stage discussions” to expand its portfolio to include new uranium and rare-earth element project interests as well as additional precious, base and strategic metal opportunities.
WALLAL
The Wallal project comprises two additional licences of Wallal Main-E45/5816 and Wallal West 2 – E45/5880.
Other Paterson projects previously held by FDR Australia include Braeside West (one licence application); and Ripon Hills (one granted licence).
PROGRAMME
Power Metal aims to advance exploration to a drill-ready stage including passive seismic and 2D seismic reprocessing work programme currently in progress.
The company has also started initial administrative preparations for the planned Q1 2022 deep drilling campaign following the award of state co-funds of AU$165,000.
MAGNETIC BULLSEYE ANOMALIES
Chief executive Paul Johnson added that the drilling campaign would be the first ever completed targeting the substantial geophysical anomalies.
“We have undertaken important work in 2021 which focused mainly on the Wallal project where three magnetic bullseye anomalies have been identified which we consider to be prospective for large scale gold-copper discoveries.
“That work has increasingly strengthened our belief in the Wallal project’s potential which has led to our decision to acquire FDR Australia outright.”