Power Metallic forms Saudi Arabia joint venture with Amaar Mining

Power Metallic Mines Inc. (TSXV: PNPN) announced it has entered into a joint venture framework agreement with Amaar United Mining Company to pursue mining license opportunities in Saudi Arabia.

The agreement establishes a 50/50 ownership structure for any licenses awarded to the partnership in future Saudi mining license auction rounds. Power Metallic will serve as technical lead and proposed operator of joint ventures, while Amaar Mining will provide local coordination and regulatory interface services.

Under the funding framework, Power Metallic will contribute $2.5 million and Amaar Mining will contribute $7.5 million toward the first $10 million of approved post-award work program expenditures, while maintaining equal ownership interests. Additional funding beyond the initial $10 million will be contributed equally by both parties.

The partnership builds on Power Metallic's existing presence in Saudi Arabia through its Jabal Baudan exploration license in the Jabal Sayid Mineralized Belt, which covers more than 200 square kilometers and is located in a region known for copper, gold and zinc mineralization.

"This agreement is an important step in Power Metallic's strategy to build a durable Saudi Arabia exploration platform," said Terry Lynch, CEO of Power Metallic. The company stated the partnership provides a framework to pursue additional license opportunities while maintaining disciplined capital exposure.

Amaar Mining is affiliated with Amaar Holding, a diversified Saudi investment group. Naser Fahad Al-Qahtani, CEO of Amaar Mining, said the partnership aligns with Saudi Arabia's Vision 2030 objectives to develop the mining sector and increase its contribution to the national economy.

Power Metallic is a Canadian exploration company focused on advancing the Nisk Project Area in Canada and holds interests in properties in British Columbia, Chile and Saudi Arabia through various subsidiaries and partnerships.

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