Power Metals enters agreement with Sinomine
The 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.
VANCOUVER — Power Metals Corp. has entered into an agreement with Sinomine Rare Metals Resources Co. Limited which provides for an equity financing and an agreement to negotiate an offtake agreement with Sinomine, according to a company statement.
Sinomine’s main business covers three segments; the rare light minerals development , geo-tech services and mining rights investment. According to a company statement, Sinomine has been involved with mining, R&D, producing and products marketing of lithium, cesium and rubidium resources around the world. The company also stated that it owns two operating copper mines in Africa.
“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,” said Johnathan More, Chairman and Director of Power Metals in a company statement.
According to a statement from the company, the equity financing will consist of subscription receipts to acquire 15 million units of the company at $0.20 per subscription receipt. 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 stated that it 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 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 company also stated that the 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 closing of the equity financing.