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REG - Power Metal Res. - Binding Earn-in Agreement Signed with RIWAQ

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RNS Number : 2309I  Power Metal Resources PLC  26 March 2024

26 March 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

Binding Earn-in Agreement Signed with RIWAQ Al-Mawarid for Mining a
Majority-Owned Subsidiary of EV Metals Group plc

First Major Agreement for Exploration in the Kingdom of Saudi Arabia

Power Metal Resources PLC (AIM:POW), the London listed exploration company
with a global project portfolio, is pleased to announce the signing of a
mutually binding earn-in agreement with RIWAQ Al-Mawarid for Mining ("RIWAQ"),
an industrial and mining company based in the Kingdom of Saudi Arabia ("KSA").
RIWAQ is a special purpose subsidiary of EV Metals Group plc ("EVM") focused
on the development of the Saudi supply chain for critical raw materials from
the exploration, mining and processing of minerals and metals in KSA.

HIGHLIGHTS:

RIWAQ is the sole beneficial owner and the sole registered holder of 15
tenements in the Balthaga Suite, approximately 400km east of Jeddah in the
south of the Arabian Shield, covering a total area of 1487.11km(2) (the
"Tenements"), further details of which are set out below.

11 of the tenements currently have exploration licences granted, with the
remaining four pending grant.

13 of the tenements are considered prospective for hard rock lithium, one for
nickel sulphides and one for a copper/molybdenum porphyry system.

RIWAQ has granted POW the right to earn a 20% ownership interest in the
Tenements ("First Interest") by sole funding US$350,000 in expenditure on the
Tenements within 12 months from the date of execution of the binding
agreement.

RIWAQ has granted POW the right to earn a further 10% ownership interest in
the Tenements ("Second Interest") by sole funding US$150,000 on the Tenements
within six months following earning of the First Interest.

Following earning of the First Interest or Second Interest, whichever occurs
later, the Parties have entered into a non-binding agreement to form a
contributing joint venture in proportion to their Tenement interests.

Sean Wade, Chief Executive Officer of Power Metal Resources PLC commented:

"I am delighted to be able to report the signing of this binding agreement,
our first major agreement for exploration activity in KSA. This is a very
exciting collection of tenements and we are eagerly anticipating starting work
with the RIWAQ team after Ramadan and Eid al-Fitr.

Our intention is to form a long-term partnership with EVM, RIWAQ's majority
owner to provide upstream opportunities for EVM's growing midstream processing
operations. RIWAQ have a number of other licences currently under application,
highlighting further growth opportunities beyond this initial agreement.

These assets will reside within our majority-owned subsidiary Power Arabia
Ltd, which as announced on 12(th) March 2024, is currently undergoing a
pre-IPO financing round to fund activities in the region with a view to a
listing on the London capital markets in due course."

The Tenements

 

 License Name  Deposit Type    Order #  Total Area km(2)  Granted / Pending  Second Application Fees
 Balthaga 1    LCT pegmatite   9166     98.42             Granted            1 June 2022
 Balthaga 2    LCT pegmatite   9176     99.54             Granted            1 June 2022
 Balthaga 3    LCT pegmatite   9177     98.46             Granted            1 June 2022
 Balthaga 4    LCT pegmatite   9178     99.92             Granted            1 June 2022
 Balthaga 5    LCT pegmatite   9180     99.52             Granted            1 June 2022
 Balthaga 6    LCT pegmatite   9181     99.73             Granted            1 June 2022
 Balthaga 7    LCT pegmatite   9183     99.36             Granted            1 June 2022
 Balthaga 8    LCT pegmatite   9185     99.83             Granted            1 June 2022
 Balthaga 9    LCT pegmatite   9186     99.78             Granted            1 June 2022
 Balthaga 10   LCT pegmatite   9187     99.46             Granted            1 June 2022
 Balthaga 11   LCT pegmatite   9220     98.93             Granted            1 June 2022
 Balthaga 13   LCT pegmatite   9222     99.44             Pending            1 June 2022
 Balthaga 15   LCT pegmatite   9224     99.44             Pending            1 June 2022
 Al Muwayh     Ni Sulphide     12453    97.78             Pending            1 June 2022
 Jabal Hadan   Porphyry Cu/Mo  10785    97.50             Pending            1 June 2022

 

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

 

For further information please visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/)  or contact:

 Power Metal Resources plc
 Sean Wade (Chief Executive Officer)                                            +44 (0) 20 3778 1396

 SP Angel Corporate Finance (Nomad and Joint Broker)
 Ewan Leggat/Caroline Rowe/Harry Davies-Ball                                    +44 (0) 20 3470 0470

 SI Capital Limited (Joint Broker)
 Nick Emerson                                                                   +44 (0) 1483 413 500

 First Equity Limited (Joint Broker)
 David Cockbill/Jason Robertson                                                 +44 (0) 20 7330 1883

 BlytheRay (PR Advisors)

 Tim Blythe/Megan Ray                                                           +44 (0) 20 7138 3204

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration
company which finances and manages global resource projects and is seeking
large scale metal discoveries.

 

The Company has a principal focus on opportunities offering district scale
potential across a global portfolio including precious, base and strategic
metal exploration in North America, Africa and Australia.

 

Project interests range from early-stage greenfield exploration to later-stage
prospects currently subject to drill programmes.

 

Power Metal will develop projects internally or through strategic joint
ventures until a project becomes ready for disposal through outright sale or
separate listing on a recognised stock exchange thereby crystallising the
value generated from our internal exploration and development work.

 

Value generated through disposals will be deployed internally to drive the
Company's growth or may be returned to shareholders through share buy backs,
dividends or in-specie.

About EV Metals Group plc

EV Metals Group plc (EVM) is a global battery chemicals and technology
business committed to a clean energy future.

EVM is focused on the production of high purity chemicals required in
rechargeable batteries for electric vehicles and renewable energy storage. The
business model is based on the integration of upstream (mining) and midstream
(chemical refining) supply chains for  critical raw minerals from
geopolitically aligned sources to produce high purity battery chemicals vital
to the global energy transition.

Through the mine to refine value proposition, EVM offers transparent and
stable supplies of high purity battery chemicals to growth markets including
the Middle East, Europe and North America.  This will involve upstream mining
and production of intermediate products via participation and ownership of
mining mineral resources, facilitated by joint ventures and long-term offtake
agreements for midstream processing at its planned chemical refining plant in
the Kingdom of Saudi Arabia.

Its flagship, Lithium Chemicals Plant (LCP) in Yanbu Industrial City in KSA,
is being developed as a midstream hub for diversification and geopolitical
alignment of supply chains for electric vehicle and battery cell
manufacturers. The LCP is set to play a critical role in the Kingdom's
industrial diversification efforts, featuring an initial nameplate capacity to
produce 50,000 tpa of high purity Lithium Hydroxide Monohydrate (LHM), a
crucial chemical product expected to face significant deficits by 2030 due to
overwhelming global demand.

Incorporated in 2014, EVM is a private company with operations in Western
Australia, United Kingdom and KSA.

For further information on EVM please visit www.evmetalsgroup.com
(https://evmetalsgroup.sharepoint.com/sites/Marcomms/Documents/03%20Media%20Relations/Announcements/2024/05%20RIWAQ%20Partnership%20-%20%20Power%20Metals%20PLC/www.evmetalsgroup.com)
.

 

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