Power Metallic Mines enters strategic alliance with Amaar United Mining to pursue Saudi license opportunities

Proactive

Tue, May 19, 2026 at 9:34 AM EDT 3 min read

Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) announced on Tuesday that it has entered into a strategic alliance and joint venture framework agreement with Saudi Arabia-based Amaar United Mining Company to pursue future mining license opportunities in the Kingdom.

The agreement establishes a framework under which the companies plan to jointly participate in future Saudi mining license auction rounds and other mutually agreed opportunities, with any awarded licenses expected to be developed through a 50/50 joint venture structure.

Power Metallic said the partnership builds on its recent expansion into Saudi Arabia following the award of the Jabal Baudan exploration license in the Jabal Sayid Mineralized Belt.

Under the framework, Power Metallic is expected to serve as the technical lead and proposed operator of any post-award joint venture, overseeing geological, exploration and technical work. Amaar Mining, which is affiliated with Amaar Holding, is expected to manage local coordination, regulatory engagement and administrative support within Saudi Arabia.

The companies also outlined an initial funding arrangement for future projects. For the first $10 million in approved post-award work-program expenditures, Power Metallic is expected to contribute $2.5 million, while Amaar Mining would contribute $7.5 million. Despite the unequal initial funding split, both companies would maintain equal ownership and economic interests in the venture. Any funding beyond the initial $10 million is expected to be shared equally.

Power Metallic CEO Terry Lynch said the agreement supports the company’s strategy to establish a long-term exploration platform in Saudi Arabia.

“Our award of the Jabal Baudan license demonstrated that Power Metallic can compete successfully in one of the world's most important emerging mining jurisdictions,” Lynch said in a statement.

“This partnership with Amaar Mining gives us a strong local partner and a clear framework to pursue additional high-quality license opportunities in future auction rounds, while preserving 50/50 economics and maintaining disciplined capital exposure."

Conor Lynch, Power Metallic's vice president of business development, said the partnership combines Power Metallic’s technical expertise with Amaar Mining’s local presence and regulatory experience.

Amaar Mining CEO Naser Fahad Al-Qahtani added that the alliance aligns with Saudi Arabia’s Vision 2030 initiative, which seeks to expand the country’s mining sector and increase its contribution to the economy.