Power Metal strikes option agreement to sell Silver Peak stake

(Alliance News) - Power Metal Resources PLC on Thursday said it has signed an option agreement to ...

Alliance News 27 March, 2025 | 5:53PM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Power Metal Resources PLC on Thursday said it has signed an option agreement to sell its 30% interest in Silver Peak Resources Ltd to joint venture partner Michael B Nugent.

The metals exploration company with projects in North America, Africa, Saudi Arabia and Australia said it has agreed to grant MBN an exclusive option to acquire its 34% ownership interest in SPRL, representing a net 30% interest in the property.

In April 2021, Power Metal and MBN combined their ownership interests in the Silver Peak Mineral Property into Silver Peak Resources.

MBN will pay Power Metal CAD10,000, or USD6,987 as an option payment. If exercised by the end of March 2026, the cost is CAD9,547.00 per 1% of SPRL acquired, totalling CAD320,000 for the entire interest.

This incrementally rises to up to CAD400,000 if the option is not exercised until the end of March 2028.

Chief Executive Officer Sean Wade 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."

Shares in Power Metal Resources were down 0.7% to 14.40 pence in London on Thursday afternoon.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Power Metal Resources PLC 14.00 GBX -2.64 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2025 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures