After much anticipation, Power Metal Resources spin-out Golden Metal Resources has listed on the AIM, raising £1.98m to be put into the exploration of its swath of precious and critical minerals projects in Nevada.
This is another instance of Power’s strategy to realise project value through spin-out listings, a proven strategy with Candian-focused spin-out First Class Metals winning IPO of the year from UK Investor magazine and Australian-based explorer First Development Resources also rapidly approaching listing.
Location, Location, Location
The biggest opportunity GMET provides is that it offers UK investors a chance to play in the prized soils of Nevada, a world-renowned tier-one-mining jurisdiction ranked third in the Fraser Institute’s global mining investment attractiveness index survey in 2021.
Boasting a rich and storied mining history and 25 precious metal mines currently in production, Nevada is one of the world’s principal producers of precious metals, with the state’s mining sector contributing US$3.2 billion to its GDP and accounting for approximately 70 per cent of the United States’ gold output in 2020.
The newly listed company hosts four projects covering 22.83 square kilometres of the Silver State, with an exploration portfolio focusing on tungsten, gold, copper, silver and zinc.
Of its projects, the Company’s flagship is the Pilot Mountain Project which covers over 14 square kilometres of Western Nevada’s mineral country and boasts a Mineral Resource Estimate of 12.53Mt @ 0.27% WO3 for 34.3kt contained tungsten metal, which is rapidly growing in demand with tungsten being included in both the US and UK‘s critical mineral lists.
Expansion of this already significant tungsten MRE will be a top priority for the Company as it begins exploration, alongside uncovering the potential of the significant copper-silver-zinc credits uncovered at the Project with Golden Metal also planning to develop copper-silver rich zones uncovered in the Project’s most recent drilling campaign.
Alongside the development of Pilot Mountain, the explorer will also get to work on its three exploration stage projects: the Golconda Summit Project (gold), the Garfield Project (copper-gold-silver) and the Stonewall Project (gold-silver).
The Company said it believes its admission comes at a time when it is clear that the world needs more critical, precious and base metals.
“I believe that our Pilot Mountain Project, with its tungsten MRE, offers the greatest potential for exploitation, given that the US currently has no domestic primary production of the metal and is looking to reduce its heavy reliance on imports of critical metals from China. We are looking forward to actively pushing forward various exploration and corporate developments both within the US and UK,” Chief Executive Oliver Friesen said.
“I would like to thank all of the Golden Metal team and pre-IPO investors for their patience as we methodically worked through the various exploration and corporate developments which have led the Company to the exciting position it is in now. “
GMET’s London Stock Exchange-listed share price has risen 5.13 per cent today, currently selling at 8.13 pence (1:14 pm UTC+ 8 hours).