Home » Power Metal Resources (POW) » Power Resource Metals #POW – Acquisition of Authier North Lithium Project

Power Resource Metals #POW – Acquisition of Authier North Lithium Project

powPower 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.


The Earn-in was originally outlined in the Company’s announcement dated 16 July 2021 which may be viewed through the following link:


The 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.

Power 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:

–      CAD$25,000 in cash to the Vendor

–      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).”

–      The year 2 and 3 exploration commitments totalling CAD$50,000 and CAD$100,000 have been waived.

There 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 may be bought back by Power Metal Canada at any time for a cash payment of CAD$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.


Power Metal is also to settle professional fees totalling £65,000 through the issue of 9,208,951 new ordinary shares of 0.1p at an issue price of 0.705835p (the “Fee Shares”). 3,541,904 Fee Shares have been issued to SP Angel Corporate Finance LLP, the Company’s nominated adviser and joint broker, in lieu of fees for value of £25,000. The remaining 5,667,047 Fee Shares have been issued to another corporate adviser in lieu of fees for value of £40,000.

The services provided and settled by the Fee Shares are not specifically related to the Earn-In.

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented: 

“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.

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 Ltd which will now hold this 100% interest and further on that to follow in due course.”


Application will be made for the 6,225,392 Acquisition Shares and 9,208,951 Fee Shares to be admitted to trading on AIM which is expected to occur on or around 18 July 2023 (“Admission”). The Acquisition and Fee Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 2,080,106,256 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Sean Wade (Chief Executive Officer)

+44 (0) 20 3778 1396

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883


BlytheRay (PR Advisors)

                           +44 (0) 20 7138 3204

Tim Blythe

Megan Ray

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