Power Metal subsidiary exercises option to buy Pilot Mountain project

Power Metal Resources announced on Monday that its wholly-owned subsidiary Golden Metal Resources had exercised an option to acquire a 100% interest in the Pilot Mountain Project in Nevada.

The AIM-traded firm said the consideration for the acquisition would be paid by Power Metal primarily through the issue of $1.65m of new Power Metal shares at an issue price of 2.5p each.

It said it was planning to spin-out Golden Metal into a new listing on the London market.

Golden Metal would hold 100% interests in Pilot Mountain, as well as the Garfield and Stonewall projects, and would also hold the right to earn a 100% interest in the Golconda Summit project, all located in the US state of Nevada.

“Pilot Mountain is a project I am familiar with, having served on the board of Thor Mining from 2016 to 2018 when various work was undertaken at the project and much operational progress was secured,” said chief executive officer Paul Johnson.

“A visit to site in November 2016 clearly demonstrated the scale of the project and our recent work as part of the due diligence process has highlighted dual upside potential from exploration and development perspectives.

“We hope to articulate much more on our recent findings and forward plans shortly.”

Johnson said that with the “important” acquisition, the company had completed the portfolio of Golden Metal and could now move forward with its listing plans.

“Golden Metal has been a key focus during 2021 and over the course of the year we have assembled and crafted what we believe will be an exciting proposition for London market investors.”

At 1147 GMT, shares in Power Metal Resources were down 4.01% at 1.72p.