Modern Mining October 2024

MINING FINANCE

prospective region for uranium in the world. Uranium is the fuel most widely used by nuclear plants for fission, which could place the metal in a central position to energy transition efforts. The growing interest in nuclear energy caused uranium prices to surge in 2023 – one of the only commodities to do so. Power Metal has identified the uranium portion of its business as a key driver for growth and has been able to capitalise on the growing interest in the element through a strategic financing agreement and joint venture. In June 2024, a subscription agreement was initiated with natural resources investor ACAM LP, whereby ACAM will invest £2 million through a loan note. The partnership comes with the intention of forming a joint venture involving Power Metal’s entire portfolio of uranium licences. ACAM’s willingness to invest across the entire portfolio puts weight behind the prospectivity of the licences. Pursuant to the proposed joint venture, the arrangement could even extend to a £10 million initial equity investment in return for a 70 per cent stake in Power Metal’s Canadian subsidiary. Geological analysis conducted by the company has already indicated the presence of high-grade uranium across a range of licence areas, and bringing in a partner to expedite exploration will ensure that this potential is realised in the context of a rapidly growing market, whilst ACAM’s expertise as a natural resources specialist will prove invaluable. Power Metal is proof that sometimes different is better; indeed, Mining Journal has hailed the company as “a rare success story on London’s junior market”, with its uranium portfolio as its “most exciting” asset. Oriole Resources The dream scenario for a small to mid-cap mining company is to have first-mover advantage in a new, highly prospective region. This is exactly the situation that Oriole Resources finds itself in; the gold and base metal explorer possesses numerous permits in Cameroon and delivered the country’s first JORC compliant gold resource in December 2022. Like Phoenix and Power Metal, Oriole has counteracted the tough market conditions by implementing an intuitive financing arrangement. Keen to capitalise on its advantageous position, Oriole reached a deal in November 2023 with Ghana-based

mining and civil contractor BCM International. The deal concerns the highly prospective gold projects Bibemi, located in the north-east of Cameroon, and Mbe, one of the licences within Oriole’s Central License Package. BCM will earn up to a 50 per cent interest in the Mbe licence in return for a $1 million initial signature payment, followed by $4 million in exploration expenditure. Oriole is also eligible for further JORC resource-based success payments. The deal for the Bibemi project follows a similar structure, with BCM acquiring 50 per cent, albeit with an initial signature payment of $500,000. At Mbe, the investment will largely go towards defining the available resources, whilst at Bibemi, it will go towards undertaking resource-expansion drilling. The high cost of gold

Los Andes Copper’s core shed in Santiago, Chile.

10  MODERN MINING  www.modernminingmagazine.co.za | October 2024