NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES
VANCOUVER, BC, March 27,
2023 /CNW/ - Power Metals Corp. ("Power
Metals" or the "Company") (TSX
VENTURE:PWM)(FRANKFURT:OAA1)(OTCQB:PWRMF) is pleased to
announce that it has closed its previously announced brokered
private placement of 11,325,000 common shares of the Company that
will qualify as "flow-through shares" (within the meaning of
subsection 66(15) of the Income Tax Act (Canada)) (the "Flow-Through Shares").
The Flow-Through Shares were issued at a price of $0.57 per Flow-Through Share for aggregate gross
proceeds of $6,455,250 (the
"Offering").
Canaccord Genuity Corp. acted as Agent for the Offering, and
received a cash commission equal to 6% of the gross proceeds of the
Offering, except with respect to subscribers on the Company's
"president's list" for which a cash commission equal to 2% of the
gross proceeds of the Offering was paid. As additional
consideration, the Agent received 226,500 broker warrants. Each
brokers warrant is exercisable into one common share of the Company
at $0.40 per common share until
September 27, 2024.
Pursuant to the Offering, Winsome Resources Limited has
increased its share ownership in Power Metals to 10.13%.
The Flow-Through Shares, the brokers warrants and any shares
issuable on exercise thereof are subject to a hold period expiring
July 28, 2024. The Offering is
subject to certain conditions including, but not limited to, the
receipt of the approval of the TSX Venture Exchange.
The gross proceeds of the Offering will be used by the Company
to incur eligible "Canadian exploration expenses" that will qualify
as "flow-through critical mineral mining expenditures" as such
terms are defined in the Income Tax Act (Canada) and "eligible Ontario exploration expenditures" as defined
in subsection to 103(4) of the Taxation Act, 2007 (Ontario) (the "Qualifying
Expenditures") related to the Company's projects located in the
province of Ontario on or before
December 31, 2024. All Qualifying
Expenditures will be renounced in favor of the subscribers
effective December 31,
2023.
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.
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 under
applicable Canadian and United
States securities laws. These statements are based on
current expectations of the Company and include statements relating
to the use of proceeds raised under the Offering (and the timing
thereof), the renunciation of the Qualifying Expenditures, receipt
of final approval of the Offering from the TSX Venture Exchange,
and tax treatment of the Flow-Through Shares. 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.
SOURCE POWER METALS CORP