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.