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Power Metal Resources Secure Canadian Lithium

13 July 2023 09:43
LON: POW

Power Metal Resources continues to grow its Canadian Battery Metal holdings, with the Company securing a 100 per cent interest in the Authier North Lithium Project after negotiating the early completion of an Earn-In deal for the Project the Company signed two years ago.

Ahead of Schedule

The Company signed the Earn-In agreement in July 2021 and has to date satisfied cash and POW equity payments on the signing of the original agreement as well as the year 1 exploration spend commitment, with the Company now agreeing with the vendor that all further commitments to secure the 100% earn-in will be satisfied in full with the payments outlined in the original agreement.

Payments to secure the 100 per cent interest in the properties will be made as CAD$25,000 in cash and CAD$75,000 of shares to the Vendor, with the year 2 and 3 exploration commitments of CAD$50,000 and CAD$100,000 respectively, now being waived.

Promising Properties

The Earn-In deal concerned two properties, the Authier North and Duval East, which are situated in the prolific Val’d’Or mining camp approximately 45km northwest of the city of Val-d’Or in Quebec, with Quebec being ranked 8th on the Fraser Institute’s Investment Attractiveness Index in its 2022 Annual Survey of Mining Companies.

Authier North comprises fifteen mineral claims over 560 hectares of land considered prospective for lithium-pegmatites and base metal mineralisation, with the Project bordering Sayona Mining’s Authier Lithium Project, which hosts a 12.1Mt @ 1.0% Li2O total mineral reserve.

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Figure 1: Map showing Authier North and the neighbouring Authier Lithium Project

Duval East meanwhile is located just 3km east of Authier North and holds the postulated eastern extension to a lithium-bearing pegmatite dyke located immediately adjacent to the property which hosts a 600ft strike length and has shown lithium grades up to 1.38 per cent Li2O.

Proven Strategy

Once administration for the acquisition is complete, the properties will be held through Power’s wholly-owned UK subsidiary ION Battery Resources Limited and its local operating subsidiary in Canada as part of the Company’s ongoing strategy to realise project value through spin-out listings.

Focusing on battery metals in Canada, ION will hold and develop three projects targeting lithium and graphite, with Authier North being one of these alongside the Dorksen Bay Graphite Project in Saskatchewan and the North Wind Lithium Project in Northern Ontario.

This strategy of spin-out listings has been a proven success for Power, demonstrated most recently by the massive success of its Nevada-focused subsidiary Golden Metal Resources’ £1.98m listing its Candian-focused spin-out First Class Metals winning IPO of the year from UK Investor magazine.

The Company said securing 100 per cent interest in Authier North is a massive step for the Company due to lithium’s growing importance globally.

“I am delighted to secure a 100% interest in the Authier North Project for Power Metal through this transaction which sees an expedited completion of the Earn-in. Given the importance of lithium in the future growth and development of green technology globally, it is important to retain exposure to this metal,” Chief Executive Sean Wade said.

“With the Earn-In of Authier North now complete pending payment of consideration, we are also able to move forward with commercial plans for ION Battery Resources Ltd which will now hold this 100% interest and further on that to follow in due course.”

POW’s London Stock Exchange-listed share price has risen 3.85 per cent today, selling at 0.68 British pence (1.50 pm UTC+ 8 hours).

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