Power Metal Resources plc has restructured its subsidiary with interests in Australia by acquiring 100% of Pardoo Resources Pty Ltd holding gold-copper interests in the Paterson Province.
STRUCTURE
Power Metal owns 83.33% of First Development Resources (FDR UK).
Pardoo is an Australian exploration holding company which holds projects in trust for First Development Resources Pty Ltd (FDR Australia).
In 2021, FDR UK acquired a 100% interest in FDR Australia.
ACQUISITION
Power Metal said that the acquisition of Pardoo expedited the corporate restructuring of FDR UK, its subsidiaries and interests.
It also allows FDR UK to avoid a “costly and time-consuming inter-company transfer of strategically important exploration licences” which are now within the FDR UK group holding company structure.
The exploration licences for the projects include Wallal West 1 covering 96km2; Wallal West 2 (86km2); and Braeside West (137km2).
ACQUISITION TERMS
FDR UK will pay AU$7,000 (£3,839) in cash and the vendors will receive 300,000 new FDR UK ordinary shares at an issue price of 6.67 pence per share (a value of £20,010 and post share issue this represents 0.66% of FDR UK issued share capital).
The vendors and their professional licensing and geological teams will continue to provide assistance, and work with FDR UK post completion of the acquisition.
Following completion of the transaction, Power Metal will hold 82.78% of FDR UK.
RIPON HILLS
Power Metal also announced it had exercised an option to acquire, through FDR UK, the Ripon Hills project for A$20,000.
This will be as 398,036 Power Metal ordinary shares at 2.75p and 398,036 Power Metal warrants at an exercise price of 4.5p to current licence holder Great Sandy Pty Ltd.
LISTING
Chief executive of FDR UK Tristan Pottas said that the company was progressing with exploration work programmes as well as the planned listing for the company.
“We intend to push on at pace.
“From a corporate perspective, the acquisition of Pardoo announced today enables us to further accelerate our business plans which is important.
“Also, our work to date has demonstrated the potential opportunity offered by Ripon Hills and we are delighted that the option has been exercised.”