Power Metallic takes charge of Saudi Arabia expansion strategy

Power Metallic Mines has entered into a strategic alliance and joint venture framework agreement with Amaar United Mining to jointly pursue mining licence opportunities in the Kingdom of Saudi Arabia. The agreement, which has a 50/50 ownership, includes an initial approved post-award work program funding framework of up to US$10 million ($14 million). Power Metallic will contribute US$2.5 million of the funding, while Amaar Mining will contribute the remaining US$7.5 million.

Power Metallic is expected to act as a technical lead and proposed operator of any post-award joint venture, subject to the execution of definitive joint venture documentation. Amaar Mining will act as the local strategic partner, leading local coordination, relationship management, and administrative support. At the Jabal Baudan Project, Power Metallic intends to advance the project through a staged exploration approach. Work will include compilation, reconnaissance, review of historical data, and advanced exploration targeting of high-priority zones.

CEO Terry Lynch says this agreement is an “important step” in the company’s strategy to build a durable exploration platform in Saudi Arabia. Our award of the Jabal Baudan licence demonstrated that Power Metallic can compete successfully in one of the world’s most important emerging mining jurisdictions. This partnership with Amaar Mining gives us a strong local partner and a clear framework to pursue additional high-quality licence opportunities in future auction rounds, while preserving 50/50 economics and maintaining disciplined capital exposure.”

Saudi Arabia’s Vision 2030 identifies the mining sector as a key component of its diversification strategy, alongside energy, logistics, and manufacturing.