By: Creamer media

This follows a share option agreement entered into with Tuscan on June 19, 2024.

The environmental management plan (EMP) for the Tati project has been formally approved by the relevant government authorities, removing a key permitting milestone required to advance on-site activities including drilling.

While negotiations relating to the access agreement covering the project area, and Cherished Hope specifically, took longer than initially anticipated, discussions are now well advanced and nearing finalisation, with execution expected in short order, Power Metal informs, noting that this will provide access to the licence area to support the planned work programme.

The company highlights that a very strong gold price environment continues to materially support the advancement of the Tati project and the potential for small-scale mining at Cherished Hope, reinforcing the economic rationale for continued investment and evaluation by the Tuscan.

With the successful receipt of the EMP, and upon finalisation of the access agreement, the next project steps can proceed, with this including rotary air blast (RAB) drilling to define the geometry and continuity of gold mineralisation at Cherished Hope.

In accordance with the option, Tuscan will manage and fund the planned work programme.

Site visits are expected to start in the upcoming weeks to progress drill site investigations and preparations, with drilling planned to begin following the end of the current rainy season, anticipated by March/April.

Under the terms of the option agreement, Tuscan is progressing a structured work programme aimed at advancing the project toward a potential feasibility study.

During the option period, Tuscan will fully fund and manage all exploration, evaluation and feasibility activities, including the preparation of a feasibility study, at no cost to Power Metal.

Subject to completion of the feasibility study and Tuscan financing the construction and development of a processing plant and associated mine infrastructure, Tuscan may exercise the option to acquire a 75% interest in the licence, with Power Metal retaining a 25% interest free carried to production.

Power Metal will retain 100% ownership of all other Tati licences, and the retained interest in PL049/2022 is intended to provide ongoing exposure to potential future cash flow and dividend distributions from any future gold production.