Silver Peak Project Interest Disposal

In brief · summary, not quotable

Power Metal grants option to dispose of 30% interest in Silver Peak Resources to joint venture partner.

Interest in SPRL 33.52%
Net interest in Property 30%
Option payment C$10,000
Exercise price (Year 1, Apr 2025-Mar 2026) C$320,000
Exercise price (Year 2, Apr 2026-Mar 2027) C$360,000
Exercise price (Year 3, Apr 2027-Mar 2028) C$400,000

Full announcement

Select text to share a quote on X · sign in to keep highlights & notes in your POW notes

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed exploration company with a global project portfolio, announces the signing of an Option Agreement to dispose of its 30% interest in Silver Peak Resources Limited ("Silver Peak") to its Joint Venture partner Michael B Nugent ("MBN").

In April 2021, Power Metal and MBN transferred and combined their ownership interests in the Silver Peak Mineral Property (the "Property") into Silver Peak Resources Ltd. ("SPRL"), a private company incorporated in British Columbia. SPRL currently holds an 89.5% interest in the Property.

Power Metal has agreed to grant to MBN an exclusive option to acquire its entire 33.52% ownership interest in SPRL (representing a net 30% interest in the Property) under the following terms:

MBN will pay Power Metal C$10,000 (the "Option Payment")
During the Option Period, Power Metal grants MBN the sole and exclusive right to acquire all, in whole or part, Power Metal's ownership interest in SPRL
Where the Option is exercised during the period April 1, 2025, to March 31, 2026: C$9,547.00 per one percent of SPRL acquired, totaling C$320,000 for the entire 33.52% interest held by Power Metal in SPRL.
Where the Option is exercised during the period April 1, 2026, to March 31, 2027: C$10,740.00 per one percent of SPRL, totaling C$360,000 for the entire 33.52% interest held by Power Metal in SPRL.
Where the Option is exercised during the period April 1, 2027, to March 31, 2028: C$11,933.00 per one percent of SPRL, totaling C$400,000 for the entire 33.52% interest held by Power Metal in SPRL.

Sean Wade, Chief Executive Officer of Power Metal Resources said:

"Following on from the announcement of our exit from the Haneti investment and consistent with the ongoing review of our activities, I am pleased to announce the signing of this option agreement.

We will continue to streamline our portfolio in order to make the most efficient use of our strong capital position, as we seek to optimise returns for our shareholders."

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.