Power Metals Closes Equity Financing and Welcomes Sinomine as Partner
Power Metals Closes Equity Financing and Welcomes Sinomine as Partner
VANCOUVER, BRITISH COLUMBIA – (January 21st, 2022) - Power Metals Corp. ("Power
Metals" or the " Company") (TSX VENTURE:PWM)(FRANKFURT:OAA1)(OTC:PWRMF) is pleased
to announce that it has closed its previously announced $1,500,000 equity financing with
Sinomine Resource Group Co., Ltd., and the concurrent non- brokered financing of an additi onal
$1,500,000 in units (the “Units”) for total gross proceeds to the Company of $3,000,000.
Pursuant to the equity financing, Sinomi ne Resource Group Co., Ltd. has acquired 7,500,000
subscription receipts (the “ Subscription Receipts ”) of the Company at $0.20 per Subscription
Receipt. The gross proceeds from the Subscription Receipts have been pl aced into escrow and
will be released from escrow upon the Company and Sinomine entering into, within three
months of clo sing, a mutually satisfactory off -take agreement on all lithium, cesium and
tantalum produced from the Company’s Case Lake Property (the “ Escrow Release Condition ”).
Upon satisfaction of the Escrow Release Condition, the escrowed proceeds will be released to
the Compa ny and each Subscription Receipt will convert into one unit of the Company
consisting of one common share and one share purchase warrant, with each warrant
exercisable into one additional common share at $0.40 per share for three years from the
closing date.
Pursuant to the concurrent non- brokered financing the Company issued 7,500,000 Units of the
Company to various subscr ibers at $0.20 per Unit for proceeds of $1,500,000. Each Unit
consists of one common share and one share purchase warrant, with each warrant exercisable
into one additional common share at $0.40 per share for three years from the closing date.
In connection with the closing, the Company paid a cash finder’s fee in connection with certain
subscribers for Units. The Subscription Receipts and the shares and warrants comprising the
Units are subject to a hold period expiring May 21, 2022.
The proceeds from the financing will be used for exploration and drilling activities on the
Company’s Case Lake Property and for general working capital.
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 o n 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.
Power Metals Corp.
Johnathan More
646-661-0409
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 onwww.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.