- Power Metals (PWM) has entered into an agreement with Sinomine Rare Metals Resources Co Limited
- Sinomine is one of the largest producers of rare & light minerals products in the world
- This agreement will provide equity financing and an agreement to negotiate an offtake agreement with Sinomine
- The equity financing will consist of subscription receipts to acquire 15 million units at $0.20 per subscription receipt
- Sinomine has committed to acquiring half of the subscription receipts
- Power Metals Corp. is a diversified Canadian mining company with a mandate to explore, develop and acquire high-quality mining projects
- Power Metals Corp. (PWM) is up 2.5 per cent on the day, trading at C$0.205 per share at 12:30 pm EST
Power Metals (PWM) has entered into an agreement with Sinomine Rare Metals Resources Co Limited.
This agreement will provide equity financing and an agreement to negotiate an offtake agreement with Sinomine. The parties initially entered into a letter of intent in September 2020.
Johnathan More, Chairman and Director of Power Metals sat down with Caroline Egan to discuss the agreement.
“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 immediately be directed towards the advancement of Case Lake and their additional advisement at the board level is invaluable.”
The equity financing will consist of subscription receipts to acquire 15 million units at $0.20 per subscription receipt. Sinomine has committed to acquire half of the subscription receipts, which when converted will result in Sinomine holding approximately 5.7 per cent of the outstanding shares of Power Metals.
Sinomine will have the right to appoint a member to Power Metals’ Board of Directors.
The Sinomine Agreement provides that the parties will enter into a mutually satisfactory offtake agreement on all lithium, cesium and tantalum produced from the company’s Case Lake Property within three months of the closing of the equity financing.
Power Metals Corp. is a diversified Canadian mining company with a mandate to explore, develop and acquire high-quality mining projects.
Power Metals Corp. (PWM) is up 2.5 per cent on the day, trading at C$0.205 per share at 12:30 pm EST.