Power Metal Resources plc has acquired two Nevada copper-gold exploration properties from Sunrise Resources plc.
EXPLORATION
The acquisition comprises the Garfield copper-gold and Stonewall gold projects located in the Walker Lane mineral belt.
Garfield lies 10km east of the town of Hawthorne in Mineral County and Stonewall is 15km south of the historic mining town of Goldfield in Nye County.
Power Metal will pay £82,000 with £20,000 cash and £61,875 via 2.25 million new ordinary shares of 0.1p each in the company at 2.75p per share.
The company will also issue to Sunrise 2.25 million warrants with an exercise price of 3.75p.
Sunrise said the projects’ sale would generate a combined profit of £33,329 based on the carrying value while it would also retain a 2% net smelter return royalty.
Chief executive officer Patrick Cheetham said that the sale of its two non-core assets would allow the company to focus on its CS Pozzolan perlite project in Nevada.
Power Metal’s new 100% owned subsidiary Golden Metal Resources Ltd will operate both properties.
Chief executive Paul Johnson said that the acquisitions complemented the company’s recently acquired option over the Golconda Summit gold property also in Nevada.
Ground exploration in Nevada will first target near-surface “significant gold mineralisation” at Golconda Summit before initial work on Garfield and Stonewall.
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