Power Metals Sells Two Non-Core Properties to Focus Full Resources on its Case Lake Property
Power Metals Sells Two Non-Core Properties
to Focus Full Resources on its Case Lake
Property
VANCOUVER, BC
,
Dec. 19, 2022
/CNW/ -
Power Metals Corp.
("
Power Metals
" or the
"
Company
") (TSXV: PWM) (FRANKFURT: OAA1) (OTCQB: PWRMF) is pleased to announce that
it has entered into two binding purchase and sale agreements to sell the Company's Gullwing-Tot
Lakes property and its Paterson Lake property.
Johnathan More
, Chairman & CEO of Power Metals states, "We are pleased to announce the sale
of these two non-core properties as we will be focusing our full attention to the development of Case
Lake. Additionally, we are building our geological team to help assist in this next stage of the
Company. This non-dilutive cash injection from the sale of these two properties will be added to the
Company's currently strong working capital position."
Gullwing-Tot Lakes Property
Power Metals has entered into a binding Purchase and Sale Agreement with Critical Resources
Limited (ASX:CRR) to sell the Company's Gullwing-Tot Lakes property. The Purchase and Sale
Agreement executed between the Company and Critical Resources on
December 16
th
, 2022 is
binding on both parties. The agreement is subject to completion of due diligence requirements to the
satisfaction of Critical Resources, within 14 days of the agreement execution.
To acquire a 100% interest in the mining claims, the total consideration to be provided to the
Company from Critical Resources is:
Cash payment of
CAD$600,000
made to the Company;
Issue of
CAD$600,000
of deemed value in Critical Resources Limited's (ASX:CRR) securities to
the Company; and
Grant the Company a 1% Gross Margin Royalty for mineral production within the mining claims
acquired by Critical Resources.
Paterson Lake Property
Power Metals has entered into a binding Option Agreement with Fleur De Lys Exploration and Infini
Resources Pty Ltd. to acquire the Paterson Lake property. Infini Resources Pty Ltd. is an Australian
private company with a focus on lithium and uranium exploration, intending to undertake an initial
public offering on the Australian Stock Exchange (ASX).
To acquire a 100% interest in the mining claims of Paterson Lake, the total consideration to be
provided to the Company from Infini is:
Cash payment of
CAD$150,000
made to the Company within 30 days of the execution date;
Cash payment of
CAD$250,000
to the Company within 20 days following Infini's admission to
the Official List of ASX, or prior to the expiry date, whichever comes first;
Issue of
CAD$150,000
of deemed value in Infini's securities to the Company; and
Grant the Company a 1% Gross Margin Royalty for mineral production within the mining claims
acquired by Infini.
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 & CEO
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, 515-401-7479,
CO: POWER METALS CORP
CNW 08:00e 19-DEC-22