Power Metal reports progress at GSAe subsidiary

(Sharecast News) - Power Metal Resources said its 75%-owned subsidiary, GSA Environmental (GSAe), has made strong progress in advancing its metals extraction technologies, with new industrial commissions and licensing discussions underway across multiple regions. The AIM-traded company said GSAe had completed the first phase of a commission for a global titanium dioxide producer focused on treating metal-rich waste streams and is in advanced talks for a front-end engineering design study and licensing deal for a metals recovery facility in Saudi Arabia.

It said the proposed agreement follows a prefeasibility study completed earlier this year.

GSAe had also started a multi-stage commission with a major Saudi industrial group to remediate large volumes of waste and was in joint venture discussions with a European recycling company to process toxic industrial materials currently sent to landfill.

The subsidiary was continuing to engage with companies seeking access to critical metals such as vanadium, nickel and rare earth elements, including scandium, Power Metal said.

It added that GSAe was applying for up to €2.5m in EU-backed grant funding, following a recent award from Innovate UK.

Proceeds from the grants will support the development of a multi-feed metals demonstration plant in northern England to process industrial waste materials that would otherwise be landfilled.

Chief executive Sean Wade said the progress demonstrated the growing commercial potential of GSAe's technologies.

"It is encouraging to see the progress being made across GSAe and the potential its projects will bring," he said.

"With the growing demand for critical materials, the use of economic extraction from waste provides an innovative solution and GSAe is building a secure network in Saudi Arabia, the UK, and Europe to reduce the anticipated and ongoing supply deficits in key materials via sustainable waste extraction."

At 1506 BST, shares in Power Metal Resources were up 8.13% at 14.49p.

Reporting by Josh White for Sharecast.com.