Exploration company Power Metal will sell its Schreiber-Hemlo interests in Ontario, Canada, to First Class Metals, which is planning to list in London towards the end of this year.

Power Metal will sell the interests for £1-million, payable through the issue of 333 334 new ordinary shares at a price of £3 a share.

Power Metal will also invest C$$50 000 (about £28 764) to acquire 9 588 additional First Class shares in First Class's pre-initial public offering (pre-IPO) financing currently under way at £3 a share. 

Power Metal will own about 342 922 shares, or about 39.9% based on currently issued share capital, of First Class Metals.

"First Class Metals is delighted to have executed this agreement with Power Metal Resources. The combination of our asset bases in the Hemlo Schreiber Greenbelt Belt offers great synergies in joining together two highly prospective exploration packages which are located in one of the best mining postcodes globally. 

“Of particular interest is the combination of both companies' adjoining interests in North Hemlo into what we now see to be a 'district sized' exploration block,” says First Class Metals executive director James Knowles.

The North Hemlo project is in close proximity to TSX-V-listed Palladium One's ultra-high-grade nickel/copper Tyko discovery on its eastern flank and LSE-listed Panther Metals in the west. 

First Class has itself assembled a strategic footprint of ground in the Schreiber-Hemlo region and has already secured a joint venture with Palladium One just to the north of Power Metal's Hemlo North project.

“Bringing our Schreiber-Hemlo interests together with First Class will create a larger more diverse exploration package and on listing Power Metal will hold a strategic stake,” comments Power Metals CEO Paul Johnson.

“Given the geological prospectivity and burgeoning interest in the Schreiber-Hemlo region, we feel that First Class, with its team and their evident commitment, has the potential to perform well as a listed vehicle in London. We therefore look forward to First Class achieving its London listing as soon as possible."

First Class is developing the Pezim Blocks, Esa & Sugar Cube gold/base metal exploration projects, in Ontario. These projects totalling 579 mining cell claims are located close to the Barrick Hemlo gold mine and adjacent to the Harte Gold Sugar zone, within the Western portion of the Wawa-Abitibi Gold Belt of Ontario.