Power Metal Resources (AIM:POW) has agreed to raise its equity interest in the Fermi Exploration uranium joint venture from 30% to 45%, in exchange for funding the next exploration phase.
The London-listed explorer, which runs a portfolio of battery-metals and gold projects across North America and southern Africa, said strategic partner UCAM will retain 55% of the JV.
UCAM will exercise 13.3m existing warrants in Power Metal, repriced at 10p, raising £1.3m; Power Metal will add a further £600,000 of its own resources, taking total committed funding to roughly £1.9m.
The proceeds will fund Phase 2 drilling at the Perch River project in Saskatchewan and a geophysical survey at the Reitenbach uranium property.
Supplementary sampling at Perch River, disclosed in May, identified mineralogical and radiogenic lead signatures pointing to a "fertile" unconformity-related uranium system; Fermi's 2025 drilling is interpreted as having reached only the distal, upper halo of that system, with Phase 2 designed to test the deeper, high-temperature core and primary unconformity target.
At Reitenbach, prior radon surveys and soil geochemistry identified three high-priority targets across 100 hectares; the newly funded geophysical survey is intended to refine drill targeting.
"We believe strongly in the uranium opportunity we are building in Canada, and this increased equity position reflects that conviction," said chief executive Sean Wade.
Following the warrant exercise, UCAM will hold approximately 11% of Power Metal, becoming its largest shareholder.
Wade said he expects to update shareholders on proposed Perch River drill targets and on the Reitenbach geophysical results as they are received.