Power Metal Resources plc has sold some of its 100% Schreiber-Hemlo interests in Ontario to First Class Metals Ltd (FCM).
STRATEGIC
UK minerals explorer FCM, seeking to list later in 2021, aim to prove and develop the potential of the Pezim blocks, Esa and Sugar Cube gold-base metal projects.
FCM will pay £1 million through the issue of 333,334 new ordinary shares of £1 each in FCM at a price of £3 per share.
Power Metal will also invest C$50,000 (£28,764) to acquire 9,588 additional FCM shares in its pre-IPO financing currently underway at £3 per share.
Power Metal will then hold 342,922 shares or 39.9% of FCM based on its currently issued share capital.
Projects involved include Hemlo North gold; Roger Lake; Olga Lake; Dotted East; McKellar; Coco-East; Enable – Magical.
FCM executive director James Knowles said that the combination of both companies’ adjoining interests in North Hemlo formed a district-sized exploration block.
Power Metal chief executive Paul Johnson added that the combined interests would create a more diverse exploration package in which, following listing, the company would hold a strategic stake.