Shares of Power Metal Resources (LON: POW) are declining Monday following news that the company and its wholly-owned subsidiary Golden Metal Resources have exercised the option to acquire a 100% interest in the Pilot Mountain Project located in Nevada, USA.
Power Metal will pay $115,000 in cash to Thor Mining and $1.65 million through the issue of 48.1 million shares at an issue price of 2.5p per share on behalf of Golden Metal. The shares issued represent 3.59% of Power Metal's current issued share capital.
Power Metal plans to spin out Golden Metal into a new listing on the London capital markets.
Golden Metal will hold 100% interest in Pilot Mountain along with the Garfield and Stonewall projects. In addition, Golden Metal will also hold the right to earn a 100% interest in the Golconda Summit project. All projects are located in Nevada, USA.
“With this important acquisition we have completed the portfolio of Golden Metal and can now move forward proactively with our listing plans,” said Paul Johnson, CEO of Power Metal Resources.
“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,” added Johnson.
Power Metal shares have fallen over 5% since the announcement to 1.7p. Last week the company's shares rose after it revealed details of a new Australia Copper-Gold project in South Australia.
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