Overview of Alara Resources' Block 8 exploration agreement

Alara Resources Limited (ASX:AUQ) has signed a non-binding Heads of Terms with Awtad Copper LLC and AIM listed Power Metal Resources plc for the negotiation of an agreement for exploration of the Block 8 mineral concession in Oman. Power Metal is set to contribute up to US$740,000 for exploration activities, with the potential to earn a 10% interest in Block 8.

Executive commentary on the Block 8 exploration agreement

Alara Managing Director Atmavireshwar Sthapak expressed, 'Alara is pleased to welcome Power Metal as a third partner in Awtad Copper LLC and looks forward to the commencement of exploration activities in Block 8. Alara continues to hold its stake in the JV and maintains its right to increase its shareholding by investing in future exploration programs in the area.' Power Metal Chief Executive Officer Sean Wade commented, 'I am delighted to be sharing this news for Power Metal in the Arabian Shield, expanding the Power Arabia portfolio into Oman. I am hopeful that the prospective nature of Block 8, identified in historic workstreams, will be further proven once exploration works get underway, following consultation with Awtad and Alara.'

Summary of the Block 8 exploration agreement and outlook

Alara Resources (ASX:AUQ) has entered into a non-binding Heads of Terms with Awtad Copper LLC and Power Metal Resources plc for the exploration of the Block 8 mineral concession in Oman. Power Metal is set to contribute up to US$740,000 for exploration activities, potentially earning a 10% interest in Block 8. Alara plans to increase its stake in the future based on the success of Power Metal exploration programs. The agreement is subject to further negotiations, and Alara remains confident that a formal agreement will be reached. The exploration program aims to develop existing copper prospects and conduct grass-roots exploration work on the underexplored Block 8. The historic exploration work and geological setting of the Block are highly encouraging, with the potential for significant mineral discoveries. The company's mission is to become a mid-tier minerals producer, delivering maximum shareholder value through profitable growth driven by low-cost, sustainable operations.