Power Metal Resources, a London-listed exploration company, has completed the acquisition of a 75% stake in GSAe, a technology provider specializing in the extraction of critical metals from secondary sources. The deal, initially announced on February 29, 2024, follows successful due diligence and the execution of the Share Purchase Agreement.
GSAe, founded in 2003, is known for its innovative approach to extracting strategic metals like scandium, yttrium, niobium, and rare earth elements from waste products, aiming to transform industrial waste into valuable by-products. The company’s technology promises to reduce production costs significantly compared to traditional mining methods.
The acquisition includes several strategic initiatives:
- Two Memoranda of Understanding with Saudi Arabian suppliers for vanadium and nickel extraction.
- A UK-based program to develop a demonstration plant with a 20,000-ton annual throughput, with plans for a larger facility capable of processing 200,000 tons per year.
- Collaborations with a major Saudi Arabian mining company to process mine tailings for strategic metals.
Additionally, GSAe is part of a consortium with the University of Lincoln and other partners, backed by a UK Government Grant, to research metal extraction from over 2 million tonnes of metal-containing waste.
The financial terms of the agreement cap the total consideration at £1 million, with initial and subsequent payments structured around the issuance of new ordinary shares and contingent on GSAe’s profitability.
Sean Wade, CEO of Power Metal Resources, expressed enthusiasm about the acquisition, stating, “I am delighted to announce the completion of this seminal transaction for Power Metal. We have very exciting plans for this business and are looking forward to updating shareholders soon on contract signings and progress towards a significant revenue contribution to the Power Metal portfolio.”
This strategic move positions Power Metal Resources to capitalize on the growing demand for critical metals essential for advanced manufacturing and sustainable development.