Power Metal Resources PLC (LON:POW) hares surged higher on Wednesday after the firm said it has decided to take out an option over the Alamo Gold Project in Arizona.
Alamo is a package of mining claims covering an area of approximately 766 acres and is situated in west-central of the US state and nugget gold found so far is indicative of a large mineralised system, the AIM-listed junior believes.
In a statement, Paul Johnson, Power Metal’s chief executive, said: “This is a major step forward for Power Metal, giving the company an opportunity to expand its gold project portfolio and starting a journey into North American gold interests just as the gold sector is showing exciting strength around the world.
"We are seeking a major gold discovery and we need to get on with the exploration work as soon as possible."
The option gives the Power Metal the opportunity to acquire a 50% stake from current owner Frisco for US$60,000 and increase that to 75% after payment of a further US$200,000.
In addition, Power Metal will assume operatorship and over four years pay US$200,000 in property payments, US$850,000 on exploration and a final US$50,000 earn-in fee.
Frisco’s owners, meanwhile, will join a newly formed North American Gold Advisory Committee (NAGAC).
“To take this step into North America would be bold for a junior exploration company out of London, but we are working with enormously experienced partners and with the assurance of their experience captured in the form of a newly created North American Gold Advisory Committee,” Johnson added.
In morning trading, Power Metal shares were 39% higher at 0.97p.
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