Power Metal Resources plc has extended the period to finalise a formal binding earn-in agreement for the Qatan exploration licence in southern Saudi Arabia.
NAJRAN
The company signed a non-binding letter of intent in September with Al Masane Al Kobra Mining Company (AMAK) for a 49% stake in the licence by spending US$3 million.
Power Metal and the Saudi Arabian company have now extended the deadline by three months to finalise the formal binding agreement.
The company said it hoped to complete the transaction in the coming weeks rather than months.
Power Metal added its technical team was ready to start work as soon as the formal binding agreement is signed.
Qatan covers 72.247 km² and lies 70km east of AMAK’s two mines producing copper and zinc concentrates, and gold and silver ore in the Najran Province.
AMAK also has 21 exploration tenements covering base and precious metals and industrial minerals.