Power Metal Resources plc has established a new 100% owned subsidiary ‘incubator’ business, Power Capital Investments Ltd, to identify small, entrepreneurial business ventures with significant growth potential.
The miner will fully fund Power Capital, which will provide support in business management, project development and corporate development.
This will allow small companies to grow rapidly and realise their potential. Power Capital might also provide financial support.
SUBSIDIARY
The new incubator subsidiary will develop fledgling, high-potential early stage ventures, to the point of sale, public listing, or incorporation into the company’s portfolio, dependent on a set of key performance indicators to be established.
Power Capital would be a major shareholder in each selected business and Power Metal would have an opportunity for ‘significant capital appreciation’ from each successful venture together.
Power Metal would also have a ‘self-created pipeline of new resource projects’ for operational development.
PORTFOLIO GROWTH
“We are aware that across the globe, there are numerous opportunities with huge potential for discovery that can struggle to get past the initial phase of conception, due to a combination of funding restrictions and lack of managerial resources to apply to corporate development,” said Power Metal chief executive Paul Johnson.
“Power Capital provides our highly experienced team at Power Metal the chance to access, screen and select only the very best of these opportunities, and to nurture the growth of these fledgling companies in exchange for equity.
“It is expected that over time, Power Capital will further strengthen Power Metal’s portfolio of projects and create further value for our shareholders, as successful ventures are either incorporated into our portfolio, sold, or listed publicly.”