Power Metal Resources PLC (LON:POW) announced it has exercised its option to earn-in to the Silver Peak Project in British Columbia, Canada.

The project the Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.

READ: Power Metal Resources completes due diligence programme at Silver Peak

The metals exploration and development company said review of project data provided positive outcomes enabling Power Metal to exercise the option within the 30-day period.

Exercise of the option enables Power Metal to earn-in to a 30% interest in the project including an additional CAD$225,000 committed by the AIM-listed firm on ground exploration.

Power Metal are now working with the project vendors to continue a technical review focused on launching next stage exploration work including a Project drilling programme.

When the earn-in is completed, Power Metal will be provided with an interest in a high-grade silver exploration property in Canada, including a former working silver mine.

“The decision to exercise this option, on schedule, provides Power Metal with its first, potentially high impact, silver exploration project interest,” said chief executive Paul Johnson.

“The cash component costs of earn-in exploration and Option exercise payments are fully covered by recent warrant exercises that have brought additional cash into Power Metal, meaning the exercise of warrants and the money generated has been applied to the expansion of our business.  This is a theme we intend to continue with warrant monies enabling growth in the Power Metal business model.”

“The Silver Peak project is a material addition to the Power Metal portfolio, bringing a strategic silver project into our business, and one that offers much potential upside from positive future exploration work.”

Shares rose 3% to 1.29p on Monday afternoon.