Join our daily newsletter At The Bell to receive exclusive market insights
- Winsome Resources (WR1) nearly doubles its stake in Power Metals Corporation (PWM) from 9.94 to 19.59 per cent, by selling its Decelles and Mazérac projects
- The deal will see WR1 issue Power Metals 377,000 shares and transfer project licenses to PWM for 17.65 million ordinary shares
- The agreement marks a stepping stone in WR1’s focus to advance its world-class hard-rock discovery at Adina, which lies in the renowned Quebec region
- WR1 shares are up 0.32 per cent, trading at $1.55 at 12:23 pm AEST
Winsome Resources (WR1) has almost doubled its stake in Power Metals Corporation (PWM) from 9.94 to 19.59 per cent, through a sell-off of its Decelles and Mazérac projects in Canada.
In this transaction, WR1 will issue 377,000 fully paid ordinary shares in the company to Glenn Griesbach and transfer project licenses to PWM. In return, WR1 will receive 17.65 million ordinary shares in PWM.
This agreement represents a big step in Winsome’s strategic focus on advancing its world-class hard-rock discovery at Adina, located in the renowned Quebec region.
As for the Decelles project, it spans a 385 square kilometre area and includes 669 claims in close proximity to mining centres Val-d’Or and Rouyn-Noranda, situated 600 kilometres from Montreal.
The prospective Mazérac region project encompasses 259 claims across 149 square kilometres and is located less than 30 kilometres east of Decelles.
“This is an exciting opportunity for the company as PWM progresses its own exploration program…the exposure to a potentially significant cesium project is very attractive given the rare nature of pollucite-hosted deposits globally,” WR1 Managing Director Chris Evans said.
“The terms will ensure ongoing exploration on the Decelles and Mazérac licences in the shorter-term, while the company concentrates its resources on a maiden mineral resource estimate at Adina and further expansion of the Cancet project.”
Under the terms of the agreement, the company will retain the obligation to issue performance shares under the Mazérac option agreement for up to 24 months from the agreement date.
WR1 shares were up 0.32 per cent, trading at $1.55 at 12:23 pm AEST.
