Power Metal Resources plc has increased its Canadian uranium portfolio to 10 properties and plans more acquisitions in the area surrounding the prolific Athabasca Basin in Saskatchewan, Canada.
PROPERTIES
The three new properties, covering 271km2, include Porter Lake, Old Woman Rapids and Reindeer Lake and take the company’s total holding to 721km2.
TERMS
Power Metal’s costs of CAD$137,500 (£88,872) is payable as $25,000 (£16,158) cash and $112,500 (£72,714) through the issue of 5,703,599 new ordinary shares of 0.1p in the company at an issue price of 1.275p.
EXPLORATION
The company said that planning was nearing completion for ground exploration programmes to start in the near term at the Tait Hill, Soaring Bay, Clearwater and Thibault Lake properties.
Power Metal is also working on corporate options in relation to certain of its Athabasca uranium interests.
STRATEGY
Chief executive Paul Johnson added that the scale of the company’s uranium assets presented a significant project package.
“We are also looking to add further ground to our holdings.
“However, that said, it is not merely a move to scale that we seek, but a strategic uranium package enabling us to develop a combination of internal exploration projects, and to generate value through the commercialisation of certain of the properties.
“This is the essence of the Power Metal business with metal discoveries through exploration, combined with corporate activity to build balance sheet strength.
“Both strategies individually can potentially deliver significant value for shareholders, and together they represent a powerful combination.”