Winsome Increases Stake IN Power Metals to 19.59% Through Acquisition of TWO Strategic Properties
WINSOME INCREASES STAKE IN POWER
METALS TO 19.59% THROUGH ACQUISITION
OF TWO STRATEGIC PROPERTIES
VANCOUVER, BC
,
Aug. 24, 2023
/CNW/ -
Power Metals Corp.
("
Power Metals
" or the
"
Company
") (TSX VENTURE: PWM) (FRANKFURT: OAA1) (OTCQB: PWRMF) is pleased to
announce that it has entered into an agreement with Winsome Resources Limited ("
Winsome
")
(ASX:WR1) to acquire (the "
Acquisition
") a 100% interest in Winsome's Decelles and Mazerac
projects located in
Quebec
. Upon closing of the Acquisition, it is anticipated that Winsome will own
approximately 19.59% of the outstanding shares. Winsome currently owns approximately 9.94% of
the outstanding common shares of the Company.
Johnathan More
, Chairman of Power Metals commented, "
Power Metals continues to strengthen its
relationship with Winsome Resources through this strategic acquisition of these two prolific lithium
properties in
Quebec
. Our strong cash position gives us the ability to expand our exploration
horizon to these projects which are in close proximity to our flagship Case Lake project. Field
crews are now in the field at Case Lake and more geophysical work will immediately commence
on these two newly acquired properties. We also look forward to providing the market with an
update at Case Lake in the coming days
."
Winsome's Managing Director,
Chris Evans
said,
"We are pleased to announce progress towards
this transaction with Power Metals, which when executed will increase Winsome stake in PWM to
19.59%. This is an exciting opportunity for the Company as PWM progresses its own exploration
program. The exposure to a potentially significant cesium project is very attractive given the rare
nature of pollucite-hosted deposits globally. The terms will ensure ongoing exploration on the
Decelles and Mazérac licences in the shorter term, while the Company concentrates its resources
toward a maiden Mineral Resource Estimate at Adina and further expansion of the Cancet project.
With Decelles and Mazérac being approximately 350 kilometres from PWM's Case Lake project in
neighbouring
Ontario
, it makes commercial sense for PWM to execute exploration activities at
these sites. The Winsome team looks forward to continuing our strong relationship with PWM."
About the Decelles & Mazerac Projects
The Decelles project area covers 38,404 ha, holding 669 claims close to the mining centres of
Val-dÓr and
Rouyn-Noranda
, approximately 600km from
Montreal
.
The prospective Mazérac region project holds 259 claims across 14,700 ha and is less than
30km east of Decelles.
Both projects are in close proximity to established infrastructure and major mining centres with a
history of recent lithium discoveries.
Figure 1: Mazérac Property (CNW Group/POWER METALS CORP)
Figure 2: Decelles Property (CNW Group/POWER METALS CORP)
General location
The new claim option centred about the Mazérac township, covers an area exceeding 149km
2
.
The area is located approximately 50km southwest of
Val-d'Or
, a well-established mining town in the
Abitibi region. The sector is easily accessible by all-season roads servicing
Quebec
hydroelectric
dam Rapid-7, the Decelles water Reservoir and the La Verendrye Park, all enclosed within the
Outaouais river watershed.
The Mazérac claims are easily accessible by a dense network of trails and other forestry roads. The
area is also accessible by boat or seaplane as it is traversed longitudinally by multiple arms and
bays forming the Decelles water reservoir, upstream of the Rapid-7 hydroelectric dam of Decelles.
Geological setting
The consolidated rocks of the region are of Precambrian age. The oldest include weathered rocks of
sedimentary origin and a few of volcanic origin which are considered part of the
Pontiac
group.
The majority of the bedrock in the region is composed of granitic and syenitic rocks, which have
been intruded and mixed with rocks of the Pontiac Group. Pegmatites and associated aplites have
varying textures and reported to be abundant in the region.
The schist enclaves of the
Pontiac
group showing various degrees of assimilation, are locally
abundant. Large clusters of pegmatite are essentially homogeneous, however, some of the smaller
dykes and lenses are zoned. Diabase and gabbro dykes cut across all these rocks.
Extensive Lidar coverage reveals the influence of tectonics on the topography of the region.
The general northeast orientation of the topographic features of the eastern part of the region is
controlled by the granite and pegmatite sills in the biotite schists. There are many north, north-east
and north-west trending joints in all the rocks of the region.
Terms of the Transaction
Power Metals will acquire a 100% interest in Winsome's Decelles and Mazerac projects located in
Quebec
in consideration for the issuance of 17,650,000 common shares to Winsome. The
Acquisition and the issuance of the consideration shares to Winsome are subject to the approval of
the TSX Venture Exchange.
Scientific and Technical Disclosure
The scientific and technical disclosure included in this news release has been reviewed and
approved by
Amanuel Bein
, P.Geo., Vice President of Exploration for Power Metals, a Qualified
Person under National Instrument 43-101 Standards of Disclosure of Mineral Projects.
About Power Metals
The 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, 515-401-7479,
CO: POWER METALS CORP
CNW 07:00e 24-AUG-23