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.
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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