Power Metal Resources PLC (AIM:POW, OTCQB:POWMD) CEO Sean Wade discusses an initial £2 million investment by ACAM LP with Proactive's Stephen Gunnion.
Wade explained that ACAM, a significant global natural resource investor, has expressed keen interest in the uranium sector.
The transaction also involves a non-binding term sheet to form a joint venture (JV) including Power Metal's entire portfolio of uranium licenses. The potential investment could extend to £10 million, enabling substantial exploration funding.
Wade said the joint venture is preferable to an IPO of the company's uranium assets because it crystallises more value for shareholders and provides essential cash for exploration.
The JV valuation is structured to value the portfolio at £20 million post-money, with a 50-50 split initially. ACAM aims for a 70% stake, which will involve an additional £4 million milestone payment to Power Metal.
Wade highlighted the importance of this deal in demonstrating the value of their assets and improving shareholder returns. The next steps involve an eight-week exclusive period to finalise the transaction and begin the exploration program.