Almasane Alkobra Mining Company (AMAK) has signed a letter of intent with UK-based Power Metal Resources Plc to form a joint venture aimed at advancing exploration on AMAK’s Qatan Exploration License in southwest Saudi Arabia. The agreement seeks to establish an initial Mineral Resource Estimate for nickel ore and related minerals, according to a filing by AMAK.
Under the proposed joint venture, AMAK will hold a 51pct stake, while Power Metal Resources will own 49pct. The partnership aims to leverage Power Metal’s expertise in exploration, resource definition, processing, marketing, and sales of nickel and related minerals at the Qatan site.
In addition, the joint venture will allow AMAK to focus on its core activities, including the exploration, development, and exploitation of base metals such as copper and zinc, as well as precious metals like gold and silver within Saudi Arabia.
The letter of intent will remain valid for three months (with the possibility of extension) while the parties negotiate final terms. It will automatically terminate upon the signing of the agreement or at the end of the three-month period, unless extended.
Power Metal Resources is actively involved in exploration projects in Saudi Arabia, where it recently completed a field program, and has ongoing projects in Australia, Botswana, Canada, Tanzania, and the USA.
AMAK, a private mining company licensed by the Ministry of Industry and Mineral Resources, began producing copper and zinc concentrates in 2012 and operates in the Najran region of Saudi Arabia.
