Power Metal Resources PLC secured an option from Société Co-Operative Minière et de Suis-Traitance SARL, or SCOMIS, to acquire a 70% interest in cobalt- and copper-prospective license PR 13479 in the Democratic Republic of the Congo.
The company paid US$5,000 for a 60-day exclusivity period during which it will carry out legal and technical due diligence, prepare joint venture documentation and conduct a termite-mound sampling program across the license to test mineralization.
Power Metal said Aug. 1 that soil sampling shows the presence of anomalous cobalt at 500 parts per million to 750 ppm within the license area.
The company would pay US$50,000 to SCOMIS on the execution of the agreement and make a further payment of US$250,000 on the start of mining. If the joint venture proceeds, SCOMIS will be free-carried up to a decision to mine.
The license expires in August 2022 and is renewable for five years.