SYDNEY, AUSTRALIA: Winsome Resource Limited (ASX:WR1) has agreed to acquire shares in TSX-V listed Power Metals Corp (TSX-V:PWM) that are currently owned by Hong Kong-based Sinomine Rare Metals Resources Co Ltd.
Under this agreement, Winsome Resource has also agreed to acquire Sinomine’s offtake rights for the lithium, caesium and tantalum from the highly prospective Case Lake Project, located in Ontario, Canada.
The Project is owned by Power Metals and hosts high-grade deposits of caesium, lithium and tantalum. All three minerals are included on the latest US and Canadian critical minerals lists.
Located in north-eastern Ontario region approximately 100km north of Kirkland Lake, the Project is accessible year-round via the Translimit Road which connects Ontario and Quebec.
As a Chinese-owned entity, Sinomine is required by recent changes to Canadian law to divest its interests in the Project.
Under the terms of the agreement, for a total cash consideration of CAD$2,000,000 (AUD$2.211m) Winsome will acquire Sinomine’s total interests in Power Metals and the Case Lake Project, including:
• 7,500,000 common shares (representing 5.72% of PWM’s issued capital); and
• 7,500,000 share purchase warrants, which can be converted into shares on a one-forone basis at CAD$0.40 per Share, expiring on 17 March 2025,
Winsome Resources Managing Director Chris Evans said: “This is an exciting opportunity for Winsome to expand its interests in the Canadian critical minerals space and to enter the established mining province of Ontario, which neighbours Quebec.
“The Case Lake Project is located in relatively close proximity to a number of our assets, in particular Mazerac and Decelles, with similar geological characteristics and strong drill results showing highgrade caesium, lithium and tantalum mineralisation.
“The minerals are all in high demand within North America and the rights to the offtake agreement are another positive step in the Winsome journey. We look forward to working with Power Metals to assist in developing this impressive project”.
“However, it is important to note our current plans are for this to remain a passive investment with potential to generate longer term returns. The Company’s immediate focus is to continue exploration and development of our flagship Cancet and Adina projects.”