Power Metals Corp. Announces Intention to Spin-Out its Hard-Rock Lithium Assets
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Power Metals Corp. Announces Intention to
Spin-Out its Hard-Rock Lithium Assets
Vancouver, British Columbia (March 13th, 2017)
Power Metals Corp. (“Power Metals ” or the “ Company”) (TSXV: PWM)
(FRANKFURT: OAA1) announces that it intends to undertake a plan of arrangement whereby
Power Metals will transfer its hard-rock lithium a ssets, currently consisting of its interests in the
Larder and Case Lake properties, to a newly formed subsidiary corporation (“New PWM”), and
then list the new company on the TSX Venture Exchange.
Power Metals will assign all of its interests in the Larder and Ca se Lake properties, along with a
certain amount of cash and other assets to New PWM, such that New PWM will meet initial
listing requirements of the TS X Venture Exchange. The dire ctors and management of New
PWM will be the same as currently exists for Power Metals. Under the plan of arrangement, it is
anticipated each Power Metals shareholder will receive an eq uivalent number of common shares
of New PWM as they hold in Power Metals; an d each Power Metals warrant holder and option
holder will receive an equal number of warrants and options in New PWM on identical terms.
President and CEO, Johnathan More stated, “We are very pleased to unl ock shareholder value
immediately by separating two critical mass project portfolios that each stand on their own: hard
rock and petrobrine.
The market's attention to our attractive and exci ting petrolithium brine asset portfolio, we feel
has left our hard rock assets overshadowed and overlooked in terms of the value that they
represent to the company.
With the creation of Hard Rock PWM, to incl ude Case Lake, Larder River and an advanced
stage asset currently in the final phase of nego tiation, shareholders should benefit from each of
our asset classes receiving full value from the mark et. Our stellar results to date at Case Lake
have led us to expand the property package signi ficantly to an area now representing dimensions
of 9.5km by 9km. The Company will be embarking on an aggressive drill program at Case Lake
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this summer to follow up on previous high grade results and several kilometres in combined
strike length across the identified pegmatites.
The Company is striving to ensure that each asset held by our shareholders is given the
opportunity to be assigned maximum value by th e market based on what they are worth today
and given their near-term and long-term potential.”
The arrangement will be subject to approval of the Power Metals shareholders, warrant holders
and option holders, and of the BC Supreme Court and the TSX Venture Exchange.
ON BEHALF OF THE BOARD,
Johnathan More
Johnathan More, CEO and Director
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Power Metals Corp.
Johnathan More, CEO
646-661-0409
This press release contains forward-looking statements and forward-looking information (collectively, "forward-
looking statements") within the meaning of applicable Cana dian securities legislation. All statements, other than
statements of historical fact, are fo rward-looking statements. Although the Co mpany believes that such statements
are reasonable, it can give no assurance that such exp ectations will prove to be correct. The Company cautions
investors that any forward-looking statements by the Compan y are not guarantees of futu re results or performance,
and that actual results may differ materially from those in forward looking statements as a result of various factors,
Although the Company intends to undertake a plan of arrange ment to spin out certain assets, the actual structure
may vary depending on tax and legal implications and the requirements of the TSX Venture Exchange. There is no
assurance the proposed transactions will occur in the manner outlined above, or at all.