- Winsome Resources (WR1) increases its stake in Power Metals to around 10 per cent by taking part in a flow-through shares private placement
- WR1 bought a 5.6 per cent stake in Power Metals back in December 2022, which included a 100 per cent offtake arrangement from Power Metals’ Case Lake LCT project in eastern Ontario, Canada
- Both parties are now finalising a technical cooperation agreement to fast-track drilling and target a maiden resource at the Case Lake project
- To date, around 13,000 metres of drilling have been completed at Case Lake, with “impressive” lithium mineralisation uncovered
- Shares in WR1 are up 2.99 per cent, trading at $2.07 at 12:31 pm AEDT
Winsome Resources (WR1) has announced its plans to increase its stake in Canada-based Power Metals to around 10 per cent.
The company acquired a 5.6 per cent interest in Power Metals back in December 2022, which included a 100 per cent offtake arrangement from Power Metals’ Case Lake lithium-cesium-tantalum (LCT) project in eastern Ontario.
Winsome now aims to boost that interest to 10 per cent by participating in a flow-through shares private placement carried out by Power Metals.
A key WR1 shareholder, Waratah Capital Advisors, announced its intention to invest up to C$1.5 million (A$1.6 million) in Power Metals through Waratah’s Electrification and Decarbonisation AIE LP Fund.
“Winsome Resources is happy to be involved in this raise with Power Metals Corp and is pleased to see Waratah also willing to take an interest,” Winsome Managing Director Chris Evans said.
“The move by Waratah is a testament to the high prospectivity of the Case Lake project and ratifies our intention to help rapidly advance the project.”
Waratah has interests in several lithium and battery mineral projects around the world.
Additionally, Winsome and Power Metals are finishing up a technical cooperation agreement for Winsome to provide technical assistance for upcoming exploration and drilling programs at Case Lake in an effort to establish a maiden resource as soon as possible.
“We also intend to meet with the Power Metals team at the PDAC conference in Toronto this week to finalise the terms of the technical cooperation agreement, allowing Power Metals to leverage the Winsome team’s significant experience in exploration and drilling of hard rock lithium resources in Canada,” Mr Evans said.
To date, around 13,000 metres of drilling have been carried out at the Case Lake property returning” “impressive” lithium mineralisation.
Shares in WR1 were up 1.99 per cent, trading at $2.05 at 11:30 am AEDT.