UK-based firm to invest in Oman's Block 8 mineral concession

MUSCAT, SEPT 11

London-listed exploration company, Power Metal Resources, has taken a significant step into the Sultanate of Oman by signing a non-binding Heads of Terms (HoT) with Alara Resources and Awtad Copper. This strategic partnership aims to facilitate Power Metal's investment of up to $740,000 to earn a 12.5% stake in the Block 8 mineral concession, located in the Hazm area of northwestern Oman.

Alara Resources, an Australia-based mining and exploration firm, is currently focused on expanding its operations in the Middle East. Its flagship project, the Al Wash-hi - Majaza Copper-Gold Project, has positioned Alara as a key player in Oman’s mining sector. The company is actively exploring additional opportunities for copper, zinc, silver, and gold in Oman and Saudi Arabia. Awtad Copper holds a joint venture with Alara and is dedicated to the Block 8 Project.

The formal agreement is expected to be finalised within 15 days, although the non-binding nature of the HoT leaves some uncertainty. Despite this, Power Metal’s management expresses confidence in moving forward, highlighting the potential of Block 8 based on historical data.

CEO Sean Wade emphasised the significance of this opportunity, stating, "I am delighted to be sharing this news for Power Metal in the Arabian Shield, expanding the Power Arabia portfolio into Oman." He indicated that the exploration efforts could validate the area's mineral potential.

The terms of the HoT outline that Power Metal will manage the exploration programs during the investment phase. The company is tasked with overseeing all aspects of the exploration activities, including management, planning, execution, interpretation, and reporting, in consultation with Awtad Copper. The initial investment of $500,000 is earmarked for the period leading up to the renewal of the existing license in April 2025, with an additional $240,000 expected to follow.

Upon reaching the initial expenditure milestone, Power Metal will earn a 10% interest in Block 8, with a further 2.5% interest contingent on the additional spending. Once the total investment of $740,000 is completed, the parties will negotiate a joint funding program for future expenditures and ownership percentages. Awtad Copper will retain the licenses during this phase and will be responsible for obtaining the necessary approvals for exploration.

The collaboration underscores the growing interest in Oman’s mineral resources, particularly in light of the proximity of the Al Wash-hi - Majaza Mine to Block 8. Awtad Copper's established presence in the region is expected to enhance operational efficiencies, providing local logistical support and stakeholder engagement for Power Arabia.

Shaikh Zeyad bin Talib al Maawali, Chairman of Awtad Copper, expressed optimism about the partnership, stating, "The exploration of Block 8 represents a significant milestone in unlocking the mineral wealth of Oman." He highlighted the combined expertise of the three entities as a critical factor in realising the project's potential.