AMAK inks LoI with Power Metal for nickel ore extraction in Qatan

Almasane Alkobra Mining Company (AMAK) signed, on Sept. 9, a letter of intent (LoI) with Power Metal Resources Plc, listed on the London Stock Exchange, according to a statement to Tadawul.

This LoI aims for a joint venture (JV) agreement to explore, develop, and extract nickel ore and related minerals under AMAK Qatan Exploration License in southwest Saudi Arabia.

The potential JV will be 51% owned by AMAK and 49% by Power Metal Resources, provided the latter will spend a pre-agreed amount on the exploration operations at the Qatan site within two years.

The primary goal of the potential JV is to capitalize on Power Metal Resources' expertise in the field of exploration, development, and extraction of nickel ore and related minerals, in addition to processing, marketing, and selling at the Qatan exploration license site.

Further, the JV will allow AMAK’s core business to focus on studying, developing, and undertaking projects related to the base metals such as copper and zinc, as well as precious metals like gold and silver in Saudi Arabia.

The LoI will be valid for three months (extendable) until the binding agreement terms are finalized and agreed upon by the parties. It will expire upon signing the binding agreement, or after the three-month period or any extension thereof.

The LoI does not entail any financial or legal obligations for either party, and any related agreements will be drafted later in detailed contracts.

Power Metal Resources successfully completed an exploration project in Saudi Arabia and currently has several ongoing projects in Australia, Botswana, Canada, Tanzania, and the United States, with its headquarters located in the United Kingdom.