Power Metal Resources, the AIM-listed exploration company and project incubator, has made a US$1.5 million strategic investment in Greyridge Exploration Corp, a Canadian firm exploring for copper and gold in Saudi Arabia.
The deal gives Power Metal an initial 4.6% stake in Greyridge, which forms part of a broader financing round of up to US$10 million from global investors.
Alongside the investment, the two companies have signed a memorandum of understanding to explore potential joint ventures and earn-in agreements across Greyridge’s Saudi licence portfolio through Power Metal’s majority-owned subsidiary, Power Arabia.
Greyridge is one of the largest foreign holders of exploration licences in the Kingdom, with a 100% interest in 25 licences spanning 1,817 square kilometres of what the company describes as highly prospective ground. The investment will fund exploration and drilling at Greyridge’s Ad Dawadimi and Al Amar projects.
Saudi Arabia has been actively courting foreign mining investment as part of its economic diversification push, with an estimated US$2.5 trillion in untapped mineral resources.
Power Metals shares were slightly weaker following Monday’s announcement.