Power Metal Resources plc is extending its Australian copper reach in a planned merger of its Wilan project with two companies holding other exploration licences in Queensland.
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The Wilan project comprises two exploration licences covering a total 1,994km2.
Power Metal has signed a heads-of-terms to combine Wilan with projects held by Australian companies RAB Resources Pty Ltd and New Horizon Metals Pty Ltd.
The two companies hold a 100% interest in two granted exploration licences and four licence applications covering 1,507km2 in the Mount Isa copper belt.
RAB is applying for the Gregory River East and West licences covering 169.6km2 and 220.8km2, respectively.
The tenements are prospective for copper, gold, lead, zinc and cobalt.
RAB owns granted exploration licence Fiery Creek covering 320km2 and prospective for copper, gold, lead, zinc and cobalt.
The company also owns Dynamite Creek covering 288km2 and prospective for copper, gold and cobalt.
New Horizon is applying for an exploration licence for the Copper Creek project covering 195.2km2, which is prospective for copper, cobalt, silver, uranium and rare earth elements.
The company is also applying for the Bortala exploration licence covering 313.6km2 and prospective for copper, cobalt, silver, lead, zinc, uranium and rare earth elements.
Power Metal said that the new company, NewCo, will acquire outright the shares in its local subsidiary, RAB and New Horizon.
Power Metal will have a 20% interest and RAB and New Horizon will each hold 40% in NewCo.
NewCo is planned to list during Q2 2023 or undergo acquisition from an existing listed vehicle.
“Power Metal recognises the forward dynamic of copper as a commodity and the merger will provide the company with an immediate equity exposure to a strategic portfolio of exploration interests in the Mount Isa copper belt of Queensland, Australia,” added chief executive Paul Johnson.
“The Queensland projects are targeting major copper discoveries within a world class copper belt and are situated close to ground held by a number of substantial mining companies.”