LONDON: Power Metal Resources PLC, a London-listed exploration company, has announced a deal to buy 75% of GSAe, a UK-based engineering technology provider that specialises in extracting strategic metals from waste sources.
GSAe’s technology enables the production of high-purity metals such as scandium, yttrium, rare earth elements, vanadium, nickel and niobium, which are used in advanced manufacturing. The company also claims to reduce the environmental impact of waste materials by preventing harmful compounds from being released and reducing landfill volumes.
The deal is worth up to £1 million, depending on GSAe’s performance over the next three years. Power Metal will pay an initial £75,000 in shares, followed by further payments in cash or shares upon GSAe signing a commercial agreement with a third-party and achieving annual profits of at least £450,000, £650,000 and £1 million in the first, second and third year respectively.
Power Metal said the acquisition would complement its existing portfolio of large-scale metal discovery projects across the world and provide a new revenue stream from GSAe’s technology.
Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented:
“I am very excited to announce this proposed strategic acquisition for Power Metal. We have ambitious plans for this innovative business and believe that the extraction of strategic metals from waste products fits well with our strategy of seeking exposure to the critical metals needed for the global energy transition.
GSAe’s proprietary technology has wide application, including in Saudi Arabia, with its plentiful supply of metal-rich power station ash. We believe this acquisition represents a significant step forward in our efforts to become a major operator in the region.
Moreover, the Directors believe the acquisition will also create a substantial revenue opportunity for Power Metal shareholders, which if successful, will allow us to fund our activities with less recourse to dilutive equity financing.
I look forward to announcing the completion of this transaction in due course.”