Power Metals comments on Sinomine divestment
by CM Staff
Sinomine is expected to respond to the Canadian government as it looks to the appeal process.
VANCOUVER — Power Metals Corp. says it has been advised that the Canadian government, by order in council, has ordered that Sinomine Rare Metals Resources Co. divest itself of its past and ongoing investments in the company.
Sinomine made an equity investment of $1.5 million into Power Metals. The order was made on national security grounds by virtue of the strategic importance of the company’s Case Lake lithium, cesium and tantalum deposits and Sinomine’s alleged relationship with the Chinese government.
Sinomine has made an equity investment in the company and is in process of negotiating an offtake agreement with regard to the Case Lake Project. The company is reviewing the matter with legal counsel along with Sinomine and the federal authorities with a view to “advance development of the Case Lake Project by whatever means necessary.”
Jonathan More, chairman & CEO of Power Metals commented that although the company is surprised by Canada’s stance towards Chinese investment into Canada’s critical minerals industry, its position clearly shows that they see the opportunity and assets of Power Metals as “too valuable” for such foreign investment.
He went on to say that the company has made a substantial discovery of cesium, lithium and tantalum, and what he called political gamemanship demonstrates the extreme value of Power Metals assets.
In the meantime, Sinomine is expected to respond to the Canadian government as it looks to the appeal process.
