Power Metal Resources plc has signed a non-binding heads of terms to earn 12.5% in the Block 8 copper concession in the Hazm area of northwestern Oman.
EXPLORATION
The company and its majority owned subsidiary Power Arabia Ltd reached the deal with Australia-based Alara Resources Ltd and Awtad Copper LLC.
Alara’s flagship mining project is the Al Wash-hi – Majaza copper-gold mine located close to the 496 km2 Block 8.
Established by the Al Maawali family, Awtad is a special purpose private company in Oman, focused on Block 8.
Alara holds its 10% interest in block 8 in a joint venture with Awtad.
Following a legally binding agreement, Power Metal will become the manager and spend up to US$740,000 on developing existing copper prospects and on grass roots exploration on the remainder of the block.
The company also has first right of refusal to acquire the licence if Awtad decides to sell Block 8.
Chief executive Sean Wade said that the HoT highlighted the company’s aim to deliver value from a diverse portfolio.
“I am delighted to be sharing this news for Power Metal in the Arabian Shield, expanding the Power Arabia portfolio into Oman.”
“I am hopeful that the prospective nature of Block 8, identified in historic workstreams, will be further proven once exploration works get underway, following consultation with Awtad and Alara.”