Al-Masane Al-Kobra Mining Co. and Power Metal Resources Join Forces in Saudi Arabia
Exciting news from the mining industry as Saudi firm Al-Masane Al-Kobra Mining Co. has inked a letter of intent with UK-based Power Metal Resources to form a joint venture aimed at advancing exploration in the Kingdom’s Qatan mining site.
Strategic Growth Plan Unveiled
The signing of the joint venture agreement comes hot on the heels of Al-Masane Al-Kobra Mining Co.’s strategic growth plan, which will focus on gold deposit production and operational expansion until 2025.
Aligning with the Kingdom’s Vision 2030
The ambitions of Al-Masane Al-Kobra Mining Co. align perfectly with Saudi Arabia’s goal of positioning the mining industry as a major pillar of the country’s economy, given the estimated $2.5 trillion worth of mineral wealth in the Kingdom.
CEO Statements
Geoff Day, CEO of AMAK, expressed delight in partnering with Power Metal Resources, emphasizing the importance of strategic alliances in maximizing the mineral potential of Saudi Arabia under Vision 2030.
Sean Wade, CEO of Power Metal Resources, called the partnership a significant development and looks forward to unlocking the full potential of Qatan through their collaboration.
Exploration Agreement Details
The joint venture agreement aims to leverage Power Metal Resources’ expertise in exploring nickel and related minerals, while providing AMAK with the opportunity to focus on the development of base and precious metal projects in Saudi Arabia.
Financial and Operational Impact
The Qatan exploration license covers 72.24 sq. km and is strategically located near AMAK mines in the Najran Province. Established in 2008, AMAK has seen a significant increase in net profit driven by higher sales volumes and prices of copper, zinc, and gold.
The letter of intent between the two companies will remain in force for three months, with the possibility of extension. Detailed agreements will be drafted at a later stage to solidify the partnership and outline financial and legal obligations.