VANCOUVER, BC, Dec. 24, 2020
/CNW/ - Power Metals Corp. ("Power Metals
Corp." or the "Company") (TSX-V: PWM)(FRANKFURT:
OAA1)(OTC: PWRMF) is pleased to announce that it has entered into
an amending agreement with Exiro Minerals Corp. regarding the
remaining payments due by the Company to acquire the Paterson Lake
and Gullwing-Tot Lakes properties.
![Power Metals Corp. logo (CNW Group/POWER METALS CORP) Power Metals Corp. logo (CNW Group/POWER METALS CORP)](https://mma.prnewswire.com/media/1391516/POWER_METALS_CORP_Power_Metals_Completes_Option_Agreement_for_10.jpg)
To exercise the option to acquire the properties, the Company
and Exiro Minerals have agreed that the remaining cash payment and
share issuance due under the March 1,
2017 property option agreement (as amended) will be settled
by the Company delivering 920,000 common shares of the Company.
Exiro has agreed to accept equity in lieu of cash to complete the
option agreement. Power Metals will own the two properties 100%
upon shares payment. In addition (i) upon a feasibility study being
completed on a property, Power Metals will make an additional
$450,000 payment (in cash or shares
at Power Metals' election); and (ii) Exiro will be entitled to a
0.5% NSR royalty on all production from the Properties.
The amending agreement is subject to TSX Venture Exchange
approval.
Paterson Lake Property is located within the Separation Rapids
Greenstone Belt, north of Kenora,
northwestern Ontario. Paterson
Lake Property has Li-Cs-Ta mineralization with multiple petalite
(Li ore mineral) and Ta-oxide pegmatites including Marko's
Pegmatite and Jesse's Pegmatite (Power Metals press releases dated
Oct. 29, 2018 and Nov. 28, 2018). Marko's pegmatite also contains
pollucite (Cs ore mineral).
Power Metals has two lithium drill ready targets at Paterson
Lake located along two parallel northeast-southwest petalite
pegmatite trends:
- Marko's pegmatite
- Jesse's pegmatite
Highlights of Marko's pegmatite include:
- over 268 m strike length on
surface
- 3.36 to 4.43 % Li2O range for 13 grab samples.
- 559 to 1398 ppm Ta range for 5 grab samples
- 19 historic drill holes on Power Metals' Paterson Lake
Property
- historic drilling showed that there is both Lithium and
Tantalum mineralization at depth on the Marko's pegmatite and it is
not just one pegmatite dyke but two: Marko's and North
Marko's.
Highlights of Jesse's pegmatite:
- discovered in June 2018 by Power
Metals geologists
- consists of at least 4 parallel east-west trending dykes
exposed on surface: North, Between North and Jesse's, Jesse's and
South Dykes
- 190 m between North and South
Dykes
- 1.01 to 3.26 % Li2O for 12 grab samples
- Up to 271 ppm Ta in grab samples
Gullwing-Tot Lakes Property located north of Dryden, northwestern Ontario also has Li-Cs-Ta mineralization with
spodumene (Li ore mineral) and Ta-oxides in Gullwing Lake pegmatite
and Tot Lake pegmatite. Tot Lake also contains pollucite (Cs ore
mineral) (Power Metals press release Sept.
10, 2018).
The assay highlights from grab samples from Tot Lake pegmatite
include:
- 4.58 % Li2O from quartz – spodumene core, sample
159056
- 2.62 % Li2O from quartz – spodumene core, sample
159057
- 1.68 % Li2O and 233 ppm Ta from pink spodumene
pegmatite zone, sample 1590235
- 498 ppm Ta from albitized K-feldspar zone, sample 159238
The assay highlights from grab samples on the Gullwing North
outcrop include:
- 6.78 % Li2O from pure spodumene sample, sample
159082
- 0.73 % Li2O from spodumene – albite – quartz sample,
sample 159084
- 759 ppm Ta from large Ta-oxide crystals in albite unit, sample
159254
Power Metals completed 3 weeks of channel sampling and mapping
on the Tot Lake pegmatite in the fall of 2020. Results are
pending.
Further Corporate Update
On September 8, 2020, Power Metals
announced that it entered into a Letter of Intent with Sinomine
Resource Group Co., Ltd of Beijing,
China whereby Sinomine will partner with Power Metals to
further the exploration and development of Power Metals' Case Lake,
Paterson Lake and Gullwing-Tot Lakes properties. Sinomine's goal is
to find further cesium and lithium mineral resources for commercial
mining other than its TANCO mine, Manitoba through a strategic partnership with
Power Metals. The TANCO pegmatite has been mined for tantalum ore
concentrates, pyroceramic spodumene (Li), pollucite (Cs) and
rubidium since the late 1960's. Ongoing COVID-19 travel
restrictions has delayed site visits by Sinomine personnel to Power
Metals properties. We will provide an update to market once
dates of travel will be allowed by the Province of Ontario.
Paterson Lake
Paterson Lake Property is located in Paterson Lake and Treelined
Lake Areas, 60 km north of Kenora,
NW Ontario close to the
Ontario-Manitoba border. Paterson Lake Property is
located within the Separation Rapids Greenstone Belt and hosts
multiple petalite-bearing pegmatite dykes. The Property was
optioned from Exiro Minerals Corp. in 2017 (Power Metals press
release dated April 20, 2017). Avalon
Advanced Materials Separation Rapids Lithium Project with 8.12 Mt
at 1.37 % Li2O measured + indicated resources as of
November 15, 2017 is located 1.2 km
from the Paterson Lake Property (Avalon Advanced Materials website:
http://www.avalonadvancedmaterials.com/projects/separation_rapids/).
Gullwing-Tot Lakes
Gullwing-Tot Lakes Property is located in Drope and Webb townships, 30 km northeast of
Dryden, NW Ontario with excellent road access.
Gullwing and Tot Lakes pegmatites contain spodumene. The Property
was optioned from Exiro Minerals Corp. in 2017 (Power Metals press
release dated April 20, 2017). The
Property is located 5.5 km northeast of Essential Metals'
Mavis Lake spodumene pegmatite
field.
Quality Control
The grab samples were transported to SGS analytical lab,
Lakefield, Ontario by Manitoulin
Transport. SGS analytical lab in Lakefield, Ontario has ISO 17025
certification. Every 20 samples included one external quartz blank
and one external lithium standard. The ore grade Li2O%
was prepared by sodium peroxide fusion with analysis by ICP-OES
with a detection limit of 0.002 % Li2O. A QA/QC review
of the standards and blanks for this mapping program indicate that
they passed and the assays are accurate and not contaminated.
Qualified Person
Julie Selway, Ph.D., P.Geo.
supervised the preparation of the scientific and technical
disclosure in this news release. Dr. Selway is the VP of
Exploration for Power Metals and the Qualified Person ("QP") as
defined by National Instrument 43-101. Dr. Selway is supervising
the exploration program at Power Metals' Properties. Dr. Selway
completed a Ph.D. on granitic pegmatites in 1999 and worked for
about 3 years as a pegmatite geoscientist for the Ontario
Geological Survey. Dr. Selway also has twenty-three scientific
journal articles on pegmatites. A National Instrument 43-101 report
has been prepared on Case Lake Property and filed on July 18, 2017.
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 &
Director
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.
No securities regulatory authority has either approved or
disapproved of the contents 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
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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 based
on current expectations, including the use of funds raised under
the Offering. 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.
This press release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E the Securities Exchange Act of 1934, as
amended and such forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The TSXV has neither reviewed nor approved the
contents of this press release.
SOURCE POWER METALS CORP