Power Metal signs Saudi Arabia earn-in

Power Metal Resources plc has signed a binding earn-in for 15 tenements, mainly prospective for lithium, in Saudi Arabia.

JOINT VENTURE

The deal is with Australian company EV Metals Group plc’s special purpose vehicle RIWAQ Al-Mawarid for Mining (RIWAQ).

An option over RIWAQ was rejected in June 2023 by Critical Mineral Resources under its then name of Caerus Mineral Resources.

Power Metal today said that RIWAQ was the sole beneficial owner and registered holder of the 15 tenements covering 1,487.11km^₂ in the Balthaga suite, 400km east of Jeddah in the south of the Arabian Shield.

A total 11 tenements have exploration licences with four pending, 13 are considered prospective for hard rock lithium, one for nickel sulphides and one for a copper/molybdenum porphyry system.

Power Metal will earn a 20% ownership interest in the tenements by funding US$350,000 expenditure within 12 months from signing the earn-in.

The company also has the right to earn a further 10% holding on spending $150,000 on the project within six months following earning the first interest.

Following earning of the first or second interest, whichever occurs later, the parties will enter a non-binding agreement to form a joint venture.

Chief executive Sean Wade added: “Our intention is to form a long-term partnership with EVM, RIWAQ’s majority owner to provide upstream opportunities for EVM’s growing midstream processing operations.

“RIWAQ have a number of other licences currently under application, highlighting further growth opportunities beyond this initial agreement.

“These assets will reside within our majority-owned subsidiary Power Arabia Ltd, which is currently undergoing a pre-IPO financing round to fund activities in the region with a view to a listing on the London capital markets in due course.”