Business
Power Metals and MGX Minerals Form Accretive Partnership Over Lithium Portfolio
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 2, 2017) - Power Metals Corp. ("Power Metals Corp." or the "Company") (TSX VENTURE:PWM)(FRANKFURT:OAA1) is plea
About this update from Power Metals Corp.
[{"type":"text","content":"VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 2, 2017) - Power Metals Corp. (\"Power Metals Corp.\" or the \"Company\") (TSX VENTURE:PWM)(FRANKFURT:OAA1) is pleased to announce it has entered into a Binding Letter of Intent (the \"LOI\") with MGX Minerals Inc. (\"XMG\"), dated July 27th, 2017 to acquire certain interests held by the Company in exchange for common shares in the capital of XMG (the \"Proposed Transaction\"). The Proposed Transaction terms are as follows: XMG will acquire all of the Company's current U.S. Petrolithium Brine assets (listed below). XMG will take a 20 percent working interest in all of the Company's current hard rock assets (listed below) and any future assets that the Company acquires for the following 36 months. XMG will have the right to purchase an additional 15 percent working interest of the Company's hard rock assets for a period of 36 months for a total of C$10,000,000. XMG will receive a call option to purchase up to 10,000,000 common shares of PWM at a price of C$0.65 per share for a period of 36 months. XMG will pay to PWM 3,000,000 common shares of XMG. These shares will be restricted and subject to a 1/3 release every 5 months from the signing of the definitive agreement. The Transaction terms are subject to amendment based on tax and legal advice, and that the Parties agree to work together in good faith to negotiate and settle the final terms of the Transaction to be incorporated into the Definitive Agreements. The LOI provides for an exclusive dealing period (the \"Exclusivity Period\") commencing on acceptance of the LOI and ending on the date of closing of the Definitive Agreements, unless otherwise extended by the Parties. During the Exclusivity Period: (i) the Parties will continue their due diligence investigations in respect of each other, as applicable, and their respective businesses, operations, assets, financial condition and affairs; (ii) the Parties will proceed with the negotiation and settlement of the terms of the binding Definitive Agreements in respect of the Transaction; and, (iii) the Parties will cooperate in making application and providing all necessary information to the TSX Venture Exchange (\"TSXV\") and the Canadian Securities Exchange in order to obtain pre-clearance of the Transaction and all matters related thereto. Johnathan More, Chairman of Power Meta...