Power Metal Resources (LSE:POW) PLC (AIM:POW, OTCQB:POWMF) said it will subscribe US$1 million for a 2.6% equity interest in Chilean developer Next Minerals S.A., receiving 65,142 ordinary shares and 65,142 warrants with a three‑year life.
The filing said the deal is being done alongside Swift Mining Services Ltd., with combined subscriptions of US$3 million for a total 7.9% interest; the funds will support development of the Comahue mine and other Next Minerals growth opportunities.
Next Minerals controls over 14,000 hectares in the coastal copper belt of Antofagasta and the Comahue Phase 1 mineral resource estimate is 9.91 million tonnes at 0.81% copper, with 70% of resources in Measured and Indicated categories, the filing said; engineering and required permits have been completed and granted.
The announcement includes project economics and production guidance: Phase 1 is modelled to process 4.7 Mt over a 7‑year life to produce c.40,000 tonnes of fine copper cathode, with initial nameplate output targeted at 6,000 tpa (potential to rise to ~12,000 tpa) using sub‑level stoping and conventional crushing, heap leach and SX‑EW processing, the company said.
Sean Wade, CEO of Power Metal Resources, said: "This strategic investment in Next Minerals represents an important step in building further, meaningful exposure to copper within our portfolio, on a large scale in a premium copper jurisdiction."
