Business
Acquisition of Authier North Lithium Project
Acquisition of Authier North Lithium Project.
About this update from Power Metal Resources Plc
[{"type":"text","content":"\n\n12 July 2023\nPower Metal Resources PLC\n(\"Power Metal\" or the \"Company\")\nAcquisition of Authier North Lithium Project\nIssue of Equity for Acquisition and Professional Advisory Fees\n \nPower Metal Resources PLC (LON:POW), the AIM listed metals exploration and development company, announces the Company has negotiated early completion of the Authier North Lithium Project Earn-In to a 100% interest (the \"Earn-In\"). The Company also announces a further issue of equity in lieu of professional fees.\nEARLY COMPLETION OF AUTHIER NORTH EARN-IN\nThe Earn-in was originally outlined in the Company's announcement dated 16 July 2021 which may be viewed through the following link:\nhttps://www.londonstockexchange.com/news-article/POW/agreement-canadian-lithium-properties/15061434\nThe Earn-in Agreement concerns two properties, Authier North and Duval East (the \"Properties\"). The Properties are situated in the prolific Val'd'Or mining camp approximately 45km northwest of the city of Val-d'Or and approximately 500km northwest of Montreal, Quebec.\nPower Metal has to date satisfied cash and POW equity payments on signing of the original agreement and the following year's payments together with the year 1 exploration spend commitment. The Company has now agreed with Eagle Ridge Mining Limited based out of Barrie, Ontario, Canada (the \"Vendor\"), that all further commitments to secure the 100% Earn-In will be satisfied in full with the following balancing cash and equity payments as outlined in the original Earn-in:\n- CAD$25,000 in cash to the Vendor\n- The issue of CAD$75,000 of shares to the Vendor (GBP£43,941). At the previously agreed Power Metal ten-day volume weighted average price of 0.705835p (immediately prior to Earn-In completion) this equates to the issue of 6,225,392 new Power Metal ordinary shares of 0.1p (the \"Earn-In Shares).\"\n- The year 2 and 3 exploration commitments totalling CAD$50,000 and CAD$100,000 have been waived.\nThere is 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 (the \"Vendor NSR\") and 0.5% of the Vendor NSR ma...