Power Metal Resources plc’s subsidiary has started follow-up fieldwork for lithium exploration at its polymetallic Selta licence in the Northern Territory of Australia.
SELTA
Selta comprises three licences owned and operated by First Development Resources Ltd (FDR) which is due to be listed.
FDR has identified four uranium and four rare earth elements targets as well as the potential for lithium, gold and base-metal mineralisation.
LITHIUM EXPLORATION
FDR began Phase II of operations to examine further the “zonation of a prospective pegmatite system” which has the potential to host lithium mineralisation.
Power Metal said that desktop analysis had identified some 700 potential outcropping pegmatites within a 180km2 area.
Fieldwork will initially concentrate on a 30km2 area in the southeast of the project due to the size of the area and the number of targets generated.
The Phase II fieldwork follows on from the findings of the Phase I field reconnaissance programme in June 2022.
NET SMELTER RETURNS
Power Metal added that FDR had purchased the net smelter returns (NSRs) from the original owners for all its projects including its copper-gold licences in Western Australia.
For each NSR, the subsidiary paid £150,000 by issuing 1,875,000 new FDR ordinary shares of 1.0p at an issue price of 8p per share, for a total £300,000 through 3,750,000 new FDR shares.
As a result, FDR holds a 100% interest in all projects and there are now no NSRs over any of its properties.
Following the issue of the new FDR shares, the total FDR issued share capital will amount to 65,894,076 shares.
Power Metal holds 38,605,697 shares representing 58.59% of FDR issued share capital.