Power Metals Announces Agreement with Sinomine
Power Metals Announces Agreement with
Sinomine
VANCOUVER, BC
,
Dec. 21, 2021
/CNW/ -
Power Metals Corp.
("
Power Metals
" or the
"
Company
") (TSXV: PWM) (FRANKFURT: OAA1) (OTC: PWRMF) is pleased to announce that it
has entered into an agreement (the "
Sinomine Agreement
") with Sinomine (
Hong Kong
) Rare
Metals Resources Co Limited ("
Sinomine
") which provides for an equity financing and an agreement
to negotiate an offtake agreement with Sinomine. The parties initially entered into a letter of intent in
September 2020
.
Founded in 1999, Sinomine Resource Group Co., Ltd., is a multi-billion dollar integrated international
mining enterprise with a complete industrial chain. Sinomine succeeded in listing in Shenzhen Stock
Exchange Market in
China
in 2014. Its main business covers three segments, the rare light minerals
development (Li, Ce, Rb), geo-tech services and mining rights investment. Sinomine has been
engaging in mining, R&D, producing and products marketing of lithium, cesium and rubidium
resources around the world. It owns two operating copper mines in
Africa
. Sinomine is dedicated to
providing high-quality services to the global mining enterprise as well as mining property acquisition,
investment and commercialization.
Johnathan More
, Chairman and Director of Power Metals commented, "This is a huge day for all
shareholders of Power Metals. Sinomine is one of the largest producers of rare & light minerals
products in the world and their partnership in developing our Case Lake Project will bring extensive
value. In 2019,
Beijing
based Sinomine Resource Group acquired the historic TANCO Lithium Mine in
Manitoba
giving our newly formed partnership a well-situated processing facility for our lithium,
cesium and tantalum. Sinomine's investment in our Company will fully and immediately be directed
towards the advancement of Case Lake and their additional advisement at the board level is
invaluable."
Wang Pingwei, Chairman and CEO of Sinomine commented, "Power Metals is a promising mining
company with great potential in lithium, cesium and tantalum resources. Sinomine will work closely
with Power Metal to develop together to achieve win-win relations, and eventually to make major
breakthroughs in the field of rare & light minerals."
The equity financing will consist of subscription receipts to acquire 15 million units ("
Units
") of the
Company at
$0.20
per subscription receipt
($3,000,000)
. The Units will each consist of one
common share of the Company and a three year share purchase warrant entitling the holder to
acquire an additional common share at
$0.40
per share. Sinomine has committed to acquire half of
the subscription receipts, which when converted will result in Sinomine holding approximately 5.7%
(undiluted) of the outstanding shares of the Company. In conjunction with the financing, Sinomine will
have the right to appoint a member to the Company's Board of Directors. Management and insiders
of Power Metals will also be participating in the placement.
The Sinomine Agreement provides that the parties will enter into a mutually satisfactory offtake
agreement ("
Offtake Agreement
") on all lithium, cesium and tantalum produced from the Company's
Case Lake Property within three months of closing of the equity financing. The Subscription Receipts
will convert to Units upon the Offtake Agreement being signed. If a mutually satisfactory Offtake
Agreement is not signed those subscription receipts held by Sinomine will be cancelled and the
remaining subscription receipts will be converted to Units.
On or concurrent with closing of the subscription receipt financing approximately
$660,000
of debt
held by company insiders will be converted into Units of the Company at
$0.20
per unit.
Case Lake
Case Lake Property is located in Steele and Case townships, 80 km east of
Cochrane
,
NE Ontario
close to the
Ontario
-
Quebec
border. The Property is 10 km x 9.5 km in size with 14 identified
tonalite domes. The Case Lake pegmatite swarm consists of six spodumene dykes: North, Main,
South, East and Northeast Dykes on the Henry Dome and the West Joe Dyke on a new tonalite
dome. Case Lake Property consists of 556 cell claims in Steele, Case, Scapa, Pliny,
Abbotsford
and Challies townships, Larder Lake Mining Division. The Case Lake Property is owned 100% by
Power Metals Corp.
About Power Metals Corp.
Power Metals Corp. is a diversified Canadian mining company with a mandate to explore, develop
and acquire high quality mining projects. We are committed to building an arsenal of projects in both
lithium and high-growth specialty metals and minerals. We see an unprecedented opportunity to
supply the tremendous growth of the lithium battery and clean-technology industries. Learn more at
www.powermetalscorp.com
ON BEHALF OF THE BOARD,
Johnathan More
, Chairman & Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the
content of this news release.
No securities regulatory authority has either approved or disapproved of the contents of this news
release. The securities being offered have not been, and will not be, registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws,
and may not be offered or sold in the
United States
, or to, or for the account or benefit of, a "U.S.
person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption
therefrom. This press release is for information purposes only and does not constitute an offer to
sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking information based on current expectations, including
the use of funds raised under the Offering. These statements should not be read as guarantees of
future performance or results. Such statements involve known and unknown risks, uncertainties
and other factors that may cause actual results, performance or achievements to be materially
different from those implied by such statements. Although such statements are based on
management's reasonable assumptions, Power Metals assumes no responsibility to update or
revise forward-looking information to reflect new events or circumstances unless required by law.
Although the Company believes that the expectations and assumptions on which the forward-
looking statements are based are reasonable, undue reliance should not be placed on the forward-
looking statements because the Company can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. These statements speak only as of the date of this press
release. Actual results could differ materially from those currently anticipated due to several
factors and risks including various risk factors discussed in the Company's disclosure documents
which can be found under the Company's profile on
www.sedar.com
.
This press release contains "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as
amended and such forward-looking statements are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The TSXV has neither reviewed nor approved
the contents of this press release.
SOURCE
POWER METALS CORP
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For further information:
Power Metals Corp., Johnathan More, 646-661-0409,
CO: POWER METALS CORP
CNW 15:45e 21-DEC-21