Proactive Investors - Power Metal Resources (LON:POWP) has inked a deal to potentially earn into a new project, in Oman.
A non-binding heads of terms agreement with Alara Resources Limited and Awtad Copper LLC, sees the company earn a 12.5% in the the Block 8 copper concession.
In return, Power Metals will spend up to US$740,000 on exploration activities.
It kicks off with a $500,000 initial spend, in order to take 10% of the project.
Power Metal will manage the exploration work in close collaboration with Awtad Copper.
"I am delighted to be sharing this news for Power Metal in the Arabian Shield, expanding the Power Arabia portfolio into Oman,” chief executive Sean Wade said in a statement.
“I am hopeful that the prospective nature of Block 8, identified in historic workstreams, will be further proven once exploration works get underway, following consultation with Awtad and Alara."
"This deal showcases our intent to deliver value from a diverse portfolio and I look forward to providing shareholders with updates from the proposed agreement."
Sheikh Zeyad bin Talib Al Maawali, Awtad chair, meanwhile commented: “The exploration of Block 8 represents a significant milestone in unlocking the mineral wealth of Oman, and we believe that with the combined expertise and resources of our partners, we are well-positioned to uncover the true potential of this highly prospective area.
“As stewards of this important concession, Awtad Copper LLC is dedicated to playing a pivotal role in driving sustainable growth and delivering long-term value for Oman and all stakeholders involved."