Power Metal Resources plc has acquired the Drake Lake-Silas uranium project in Newfoundland and Labrador, Canada.
OCCURRENCES
The property will be sold into the company’s planned joint venture involving its entire portfolio of uranium licences with UCAM Ltd.
Power Metal said it would not further extend the JV’s exclusivity date, “given the advanced state of the transaction” and expects to make an announcement “imminently” on its completion.
Drake Lake-Silas comprises two non-contiguous licences covering 1,250 hectares, 12.5 km2, and 500ha, 5.0km2, respectively.
The company added: “The mapped geology is contiguous with a resource of 5 million pounds U3O8 indicated and 5.82m lbs U3O-8 inferred, and a vanadium resource of 15.81m lbs inferred of V2O5, at 0.088% V2O5 within 1 km of the property’s boundaries.”
The property hosts “two known uranium occurrences, along trend of the identified off-property resource”.
The two occurrences include up to 798 parts per million uranium in soil results and an intersection of 0.27% U3O8 over 0.20 metres.
Drake Lake-Silas has undergone a “substantial” fieldwork programme in the current field season with further work planned for this year.
Power Metal will pay £500,000 with 3,099,968 new ordinary shares of 2p each in the company at an issue price of 0.161292 p each.
Following admission, the company’s issued share capital will comprise 114,287,742 ordinary shares of 2p each, with voting rights.
Power Metal said it would also extend the date of its financial year end, subject to approval by its nominated adviser.