- Power Metals (PWM) announced that Winsome Resource Limited has signed an agreement to acquire its shares, owned by Sinomine Rare Metals Resources, for $2 million
- Winsome will purchase off-take rights for the lithium, cesium and tantalum produced from Power Metals’ Case Lake Project in Ontario
- Winsome will also own 7.5 million Power Metals common shares and 7.5 million share purchase warrants
- The companies are already in discussions about progressing the project and publishing a maiden resources as soon as possible
- Power Metals is a diversified Canadian mining company with a mandate to explore, develop and acquire high-quality mining projects
- Power Metals (PWM) is up 7.41 per cent trading at $0.29 per share
Power Metals (PWM) is announcing a significant new shareholder.
Winsome Resource Limited signed an agreement to acquire PWM shares owned by Hong Kong-based Sinomine Rare Metals Resources for $2 million.
As part of this agreement, Winsome will purchase off-take rights for the lithium, cesium and tantalum produced from Power Metals’ Case Lake Project in Ontario. Due to recent directions given by the Canadian government, Sinomine was required by law to separate its interests in the project.
The $2 million cash consideration will be paid by Winsome to purchase 7.5 million Power Metals common shares and 7.5 million share purchase warrants. The warrants can be converted any time before March 17th, 2025 for $0.40 apiece on a one-for-one basis.
Winsome will also assume all of Sinomine’s rights and obligations under an off-take agreement that was signed earlier this year between Sinomine and Power Metals. To do so, Winsome will need to help execute a deed of assignment and have Sinomine obtain all necessary approvals.
Power Metals has started discussing strategies with Winsome to facilitate the rapid development of the Case Lake Project and to build upon the completed drilling to publish a maiden resource as soon as possible.
Power Metals is a diversified Canadian mining company with a mandate to explore, develop and acquire high-quality mining projects.
Power Metals (PWM) is up 7.41 per cent trading at $0.29 per share as of 1:41 p.m. EST.
