Power Metal acquires FDR Australia

Power Metal Resources plc has acquired 100% of First Development Resources Pty Ltd (FDR Australia) after receiving the final copper-gold licence in the Paterson Region of Western Australia.

WALLAL

Earlier in 2021 the company made an offer, conditional on the granting of the final licence in the Wallal project, for 75% of the Australian company.

Following receipt today of Wallal West 1-E45/5853, and Power Metal also signed a revised, unconditional and binding agreement to acquire 100% of FDR Australia.

Power Metal’s subsidiary and UK company First Development Resources Ltd will own FDR Australia. FDR plans to list during Q1 2022 in London.

The company said it was also in “late stage discussions” to expand its portfolio with new uranium, rare earth element, additional precious, base and “strategic metal” opportunities.

The Wallal project comprises two additional licences of Wallal Main-E45/5816 and Wallal West 2 – E45/5880 together containing the western, eastern and border magnetic anomalies.

Other Paterson projects previously held by FDR Australia include Braeside West, under licence application, and the granted Ripon Hills licence.

Power Metal aims to advance exploration to a drill-ready stage with passive seismic and 2D seismic reprocessing work programme.

The company has also started initial administrative preparations for the planned Q1 2022 deep drilling campaign following the award of state co-funds of AU$165,000.

Chief executive Paul Johnson added that the programme would be the first ever completed, targeting the “substantial geophysical anomalies”.

“We have undertaken important work in 2021 which focused mainly on the Wallal project where three magnetic bullseye anomalies have been identified which we consider to be prospective for large scale gold-copper discoveries. 

“That work has increasingly strengthened our belief in the Wallal project’s potential which has led to our decision to acquire FDR Australia outright.”