VANCOUVER, BC,
Jan. 21, 2022 /CNW/
- Power Metals Corp. ("Power Metals" or the
"Company") (TSX VENTURE: PWM)(FRANKFURT:
OAA1)(OTC: PWRMF) is pleased to announce that it has closed
its previously announced $1,500,000
equity financing with Sinomine Resource Group Co., Ltd., and the
concurrent non-brokered financing of an additional $1,500,000 in units (the "Units") for
total gross proceeds to the Company of $3,000,000.
![Power Metals Corp. Logo (CNW Group/POWER METALS CORP) Power Metals Corp. Logo (CNW Group/POWER METALS CORP)](https://mma.prnewswire.com/media/1731078/POWER_METALS_CORP_Power_Metals_Closes_Equity_Financing_and_Welco.jpg)
Pursuant to the equity financing, Sinomine Resource Group Co.,
Ltd. has acquired 7,500,000 subscription receipts (the
"Subscription Receipts") of the Company at $0.20 per Subscription Receipt. The gross
proceeds from the Subscription Receipts have been placed into
escrow and will be released from escrow upon the Company and
Sinomine entering into, within three months of closing, a mutually
satisfactory off-take agreement on all lithium, cesium and tantalum
produced from the Company's Case Lake Property (the "Escrow
Release Condition"). Upon satisfaction of the
Escrow Release Condition, the escrowed proceeds will be released to
the Company and each Subscription Receipt will convert into one
unit of the Company consisting of one common share and one share
purchase warrant, with each warrant exercisable into one additional
common share at $0.40 per share for
three years from the closing date.
Pursuant to the concurrent non-brokered financing the Company
issued 7,500,000 Units of the Company to various subscribers at
$0.20 per Unit for proceeds of
$1,500,000. Each Unit
consists of one common share and one share purchase warrant, with
each warrant exercisable into one additional common share at
$0.40 per share for three years from
the closing date.
In connection with the closing, the Company paid a cash finder's
fee in connection with certain subscribers for Units. The
Subscription Receipts and the shares and warrants comprising the
Units are subject to a hold period expiring May 21, 2022.
The proceeds from the financing will be used for exploration and
drilling activities on the Company's Case Lake Property and for
general working capital.
Case Lake
Case Lake Property is located in Steele and Case townships, 80
km east of Cochrane, NE Ontario close to the Ontario-Quebec border. The Property is 10 km x 9.5 km
in size with 14 identified tonalite domes. The Case Lake pegmatite
swarm consists of six spodumene dykes: North, Main, South, East and
Northeast Dykes on the Henry Dome and the West Joe Dyke on a new
tonalite dome. Case Lake Property consists of 556 cell claims in
Steele, Case, Scapa, Pliny, Abbotsford and Challies townships, Larder Lake
Mining Division. The Case Lake Property is owned 100% by Power
Metals Corp.
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
States, or to, or for the account or benefit of, a "U.S.
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