Power Metal expands into sustainable metal extraction with GSAe deal; announces share consolidation
London, UK
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March 08, 2024 06:48 AM Eastern Standard Time
Power Metal Resources PLC (AIM:POW) CEO Sean Wade speaks to Proactive's Stpehen Gunnion about the strategic acquisition of a 75% stake in GSA Environmental (GSAe), a company specialising in extracting critical metals from waste products like fly ash and heavy fuel oil ash.
The venture is particularly focused on residues from electricity generation and spent catalysts, promising to transform them into environmentally friendly residues while extracting valuable metals essential for the energy transition.
The move is seen as a departure from Power Metal's traditional focus on incubating early-stage mining opportunities, aiming instead to provide a sustainable revenue stream to reduce dependency on capital markets. Wade highlighted the complementary nature of this acquisition to Power Metal's focus on critical metals for energy transition and the added benefit of GSAe's ICP testing capability, which will reduce costs and time for sample testing.
He further elaborated on ambitious plans to scale GSA Environmental's business, particularly in Saudi Arabia and globally, leveraging proprietary technology for significant growth.
The deal involves an initial payment of £75,000 in shares, with additional payments tied to profit milestones. Separately, Power Metal announced a 20-for-1 share consolidation to appeal to institutional investors and facilitate a US OTC listing, addressing market perceptions and regulatory requirements for trading above a penny.
Wade reassures stakeholders that the consolidation aims to attract more investors and increase liquidity, inviting any concerns to be addressed directly.
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