Power Metal Resources, a London-listed exploration company, is making a significant entry into Oman by signing a non-binding Heads of Terms (HoT) with Alara Resources and Awtad Copper. This strategic partnership aims to facilitate Power Metal’s investment of up to $740,000 for a 12.5% stake in the Block 8 mineral concession, located in the Hazm area of northwestern Oman.
Alara Resources, an Australia-based mining and exploration firm, is expanding its operations in the Middle East. Its flagship project, the Al Wash-hi – Majaza Copper-Gold Project, has established Alara as a key player in Oman’s mining sector. The company is also exploring opportunities for copper, zinc, silver, and gold in Oman and Saudi Arabia. Awtad Copper, which has a joint venture with Alara, is focused on the Block 8 Project.
The formal agreement is expected to be finalized within 15 days. Despite the non-binding nature of the HoT, Power Metal’s management is optimistic about moving forward, citing the potential of Block 8 based on historical data.
CEO Sean Wade expressed enthusiasm about the opportunity, stating, “I am delighted to be expanding Power Metal’s portfolio into Oman and exploring the mineral potential of the Arabian Shield.” He noted that the exploration efforts could validate the area’s mineral resources.
According to the HoT, Power Metal will manage the exploration programs during the investment phase, overseeing all aspects including management, planning, execution, interpretation, and reporting, in consultation with Awtad Copper. The initial investment of $500,000 will be allocated until the existing license renewal in April 2025, with an additional $240,000 to follow.
Upon reaching the initial investment milestone, Power Metal will earn a 10% interest in Block 8, with a further 2.5% interest contingent on additional spending. After the total investment of $740,000, the parties will negotiate a joint funding program for future expenditures and ownership percentages. Awtad Copper will retain the licenses during this phase and secure necessary exploration approvals.
This collaboration highlights the growing interest in Oman’s mineral resources, particularly given the proximity of the Al Wash-hi – Majaza Mine to Block 8. Awtad Copper’s established presence in the region is expected to enhance operational efficiencies, providing logistical support and stakeholder engagement for Power Metal.
Shaikh Zeyad bin Talib al Maawali, Chairman of Awtad Copper, expressed optimism about the partnership, stating, “Exploring Block 8 marks a significant milestone in unlocking Oman’s mineral wealth.” He emphasized that the combined expertise of the three entities will be crucial in realizing the project’s potential.