Power Metal expedites Canada lithium earn-in
Aim-listed exploration and development company Power Metal Resources has negotiated early completion of the Authier North lithium project earn-in to a 100% interest.
The earn-in, initially announced in 2021, concerns the Authier North and Duval East properties in the Val’d’Or mining company, in Quebec.
"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,” comments Power Metal CEO Sean Wade.
Power Metal has to date satisfied cash and equity payments on signing of the original agreement and the following year's payments together with the year one exploration spend commitment. The company has now agreed with Eagle Ridge Mining that all further commitments to secure the 100% earn-in will be satisfied in full with cash and equity payments.
There is also an existing 1.00% net smelter royalty (NSR) over the properties that will remain in place. In addition, as per terms of the original earn-in agreement, Power Metal will grant to the vendors a further 1.25% NSR and 0.5% of the vendor NSR may be bought back by Power Metal Canada at any time for a cash payment of C$500 000. In total therefore prior to any buyback, the total NSRs amount to 2.25% over the properties.
Upon completion of administration in relation to the earn-In, the ownership of the properties will be held through Power Metal's wholly owned UK subsidiary, ION Battery Resources Limited and its local operating subsidiary in Canada.
“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 which will now hold this 100% interest and further on that to follow in due course,” said Wade.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation