Power Metals (TSXV:PWM) announces $6.5M financing

• Power Metals (PWM) has signed an agreement with Canaccord Genuity for a $6.5 million private placement of its shares
• it will issue up to 11.3 million of its common shares that qualify as flow-through (FT) shares for $0.57 apiece
• Power Metals also agreed to grant the agent an option to increase the size of the offering by up to $1 million
• The offering is expected to close by March 27^th, and proceeds will go towards the company’s Ontario projects
• Power Metals (PWM) is down 2.50 per cent, trading at $0.39 per share as of 12:47 p.m. EST

Power Metals (PWM) has signed an agreement with Canaccord Genuity for a $6.5 million private placement of its shares.

According to the company, it will issue up to 11.3 million of its common shares that qualify as flow-through (FT) shares. The FT shares will be issued for $0.57 each for the total financing amount.

Additionally, Power Metals agreed to grant the agent an option to increase the size of the offering by up to $1 million. This can be done by selling approximately 1.69 million additional FT shares at the same offering price until two days before the closing date. The offering is expected to close by March 27^th.

Company shareholder may increase holding

Furthermore, existing company shareholder, Winsome Resources, has given notice of its intention to participate in the offering. As a result, Winsome’s share ownership in Power Metals will increase by nearly double to approximately 10 per cent.

Also, Waratah Capital Advisors may also subscribe to the offering, which would result in shared ownership in Power Metals of approximately 2.90 per cent, assuming the full exercise of the agent’s option.

Power Metals stated it will use the proceeds of the offering for qualifying Canadian exploration expenses for its Ontario projects. It is a Canadian mining company that focuses on projects with lithium and high-growth specialty metals and minerals. The company hopes to supply the growing lithium battery and clean-technology industries.

Power Metals (PWM) is down 2.50 per cent, trading at $0.39 per share as of 12:47 p.m. EST.