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(Sharecast News) - Power Metal Resources updated the market on its agreement to acquire a 75% stake in GSA Environmental (GSAe) on Tuesday - an engineering technology firm specialising in industrial waste remediation and metal extraction.
The AIM-traded firm said GSAe had now secured a commercial agreement with Flyash Metal Recovery, triggering the second phase of the acquisition agreement.
That phase would involve the issue of 534,188 new shares in Power Metal at a price of 14.04p each, valued at £75,000.
The company said the total acquisition consideration was capped at £1m, structured across milestones over three years.
Payments included equity or cash, contingent on GSAe achieving specified profitability targets in subsequent periods.
Additionally, Power Metal said it had issued 703,037 shares to settle the first interest payment on loan notes issued to ACAM LP under a £2m agreement.
The shares were priced at 14.224p each, valued at £100,000.
Power Metal said it had also settled a £12,000 professional services fee by issuing 85,470 shares at 14.04p per share.
A total of 1,322,695 new shares would be admitted to trading on AIM on or around 3 January.
Following admission, Power Metal noted that its total issued share capital would comprise 115,610,437 ordinary shares.
"I am pleased to see the encouraging progress from GSAe and, through the execution of this term, a further realisation of the value from this agreement for both parties," said chief executive officer Sean Wade.
"GSAe's robust and adaptive technology has wide-ranging applications, and we look forward to continuing our partnership as the GSAe team progresses on the exciting potential evident across their operations."
At 1005 GMT, shares in Power Metal Resources were down 1.82% at 13.5p.
Reporting by Josh White for Sharecast.com.
