Al Masane Al Kobra Mining (SASE:1322), also known as Amak, has postponed the finalization of its potential license agreement with British metals exploration firm Power Metal Resources (LON: POW) by an additional three months, extending the deadline to June 9, 2025.
The decision, announced in a Sunday release, marks a delay in the strategic partnership that was initially set in motion in September 2024. Under the terms of the proposed deal, Power Metal Resources agreed to invest $3 million in exchange for a 49% stake in Amak’s Qatan exploration license in Saudi Arabia.
The Qatan project represents a significant opportunity for both companies as Saudi Arabia continues to expand its mining sector in alignment with the Kingdom’s Vision 2030 economic diversification plan. Amak, one of the leading mining companies in the region, aims to leverage Power Metal Resources’ expertise in exploration and development to unlock the potential of the Qatan license.
Despite the delay, the extension suggests that negotiations are still progressing, and both companies remain committed to reaching a final agreement. Investors and industry watchers will closely monitor developments as the new deadline approaches.
The deferral of this agreement underscores the complexities of cross-border mining investments and regulatory approvals. It also highlights the increasing interest from international firms in Saudi Arabia’s growing mining sector, which has been attracting significant foreign investments in recent years.
