These are the final two of four gold exploration properties upon which the Company signed an exclusive option to acquire a 100% interest (as announced
'The exercise of our options over the Magical and Enable properties concludes
We will now commence a phase of desk-based remote sensing targeting and exploration planning with a view to being in a position to initiate ground reconnaissance and target follow-up work after the snow thaw. We look forward to providing further updates as plans progress.'
MAGICAL PROPERTY OVERVIEW
Magical is located 9km northwest of
The property is located upon the North Limb of the Schreiber-Hemlo Greenstone Belt, the property is located at the prospective contact between the intrusive
The regional geophysics data shows a north trending regional scale magnetic structure intersects the intrusion within the centre of the property, defining a preliminary target for investigation.
Magical is largely unexplored apart from the easternmost Claim cell where, in 1995,
Magical directly abuts and covers the westward strike extension of the Canadian listed junior
MAGICAL CLAIM STATUS
The Magical property consists of a total of 14 Single Cell Mining Claims ('Claims') covering an area of circa 3.0km2.
Claims are valid through to
ENABLE PROPERTY OVERVIEW
The Enable property is located on the western part of the Schreiber-Hemlo Greenstone Belt, at the contact of metavolcanic and volcano-sedimentary rock packages with the Terrace Bay Batholith.
On a regional scale the Terrace Bay Batholith contact is spatially associated with at least 28 documented gold showings including the Northshore Property which has historical resources of 1.2Moz Au3. Northshore has recently been subject to open pit mining studies and is currently held by Canadian Securities Exchange listed
Overburden cover has been attributed to the reason the Enable portion of the batholith contact remains unexplored. This presents an opportunity to discover new gold mineralisation utilising modern exploration technologies.
Access to the property is good, being 4km north of the town and railway stop of
ENABLE CLAIM STATUS
The Enable property consists of a total of 41 Claims covering an area of circa 8.7km2.
Claims are valid through to
ACQUISITION TERMS
The vendors of the Option (the 'Vendors') are a consortium led by established local prospector
The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of
The Vendors retain a 2% net smelter royalty ('NSR') on each property, Power Metal may purchase 1% of each NSR, at any time, by making a cash payment to the Vendors of
The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.
EXPLORATION PLAN
Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of the properties.
Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
The Province of
Admission and Total Voting Rights
Application will be made for the 960,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around
Following Admission, the Company's issued share capital will comprise 1,136,877,930 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the
The technical information contained in this disclosure has been read and approved by Mr
Contact:
Tel: +44 (0) 7766 465 617
Notes to Editors
The Company has a global portfolio of project interests including precious metal exploration in
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the
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