POW - Power Metal expands into sustainable metal extraction with GSAe deal; announces share consolidation
(NewsDirect)
Power Metal Resources PLC (AIM:POW) CEOSean Wade speaks to Proactive's Stpehen Gunnion about thestrategic acquisition of a 75% stake in GSA Environmental (GSAe), acompany specialising in extracting critical metals from waste productslike fly ash and heavy fuel oil ash.
The venture is particularly focused on residues from electricitygeneration and spent catalysts, promising to transform them intoenvironmentally friendly residues while extracting valuable metalsessential for the energy transition.
The move is seen as a departure from Power Metal'straditional focus on incubating early-stage mining opportunities,aiming instead to provide a sustainable revenue stream to reducedependency on capital markets. Wade highlighted the complementarynature of this acquisition to Power Metal's focus on criticalmetals for energy transition and the added benefit of GSAe's ICPtesting capability, which will reduce costs and time for sampletesting.
He further elaborated onambitious plans to scale GSA Environmental's business,particularly in Saudi Arabia and globally, leveraging proprietarytechnology for significant growth.
The deal involves an initial payment of £75,000 in shares, withadditional payments tied to profit milestones. Separately, Power Metalannounced a 20-for-1 share consolidation to appeal to institutionalinvestors and facilitate a US OTC listing, addressing marketperceptions and regulatory requirements for trading above apenny.
Wade reassures stakeholders that the consolidation aimsto attract more investors and increase liquidity, inviting anyconcerns to be addressed directly.
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