Power Metals Corp. Announces Intention to Spin-Out its Hard-Rock Lithium Assets
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 13, 2017) - Power Metals Corp. ("Power Metals" or the "Company") (TSX VENTURE:PWM)(FRANKFURT:OAA1) announces that it intends to undertake a plan of arrangement whereby Power Metals will transfer its hard-rock lithium assets, currently consisting of its interests in the Larder and Case Lake properties, to a newly formed subsidiary corporation ("New PWM"), and then list the new company on the TSX Venture Exchange.
Power Metals will assign all of its interests in the Larder and Case Lake properties, along with a certain amount of cash and other assets to New PWM, such that New PWM will meet initial listing requirements of the TSX Venture Exchange. The directors and management of New PWM will be the same as currently exists for Power Metals. Under the plan of arrangement, it is anticipated each Power Metals shareholder will receive an equivalent number of common shares of New PWM as they hold in Power Metals; and each Power Metals warrant holder and option holder will receive an equal number of warrants and options in New PWM on identical terms.
President and CEO, Johnathan More stated, "We are very pleased to unlock shareholder value immediately by separating two critical mass project portfolios that each stand on their own: hard rock and petrobrine.
The market's attention to our attractive and exciting petrolithium brine asset portfolio, we feel has left our hard rock assets overshadowed and overlooked in terms of the value that they represent to the company.
With the creation of Hard Rock PWM, to include Case Lake, Larder River and an advanced stage asset currently in the final phase of negotiation, shareholders should benefit from each of our asset classes receiving full value from the market. Our stellar results to date at Case Lake have led us to expand the property package significantly to an area now representing dimensions of 9.5km by 9km. The Company will be embarking on an aggressive drill program at Case Lake this summer to follow up on previous high grade results and several kilometres in combined strike length across the identified pegmatites.
The Company is striving to ensure that each asset held by our shareholders is given the opportunity to be assigned maximum value by the market based on what they are worth today and given their near-term and long-term potential."
The arrangement will be subject to approval of the Power Metals shareholders, warrant holders and option holders, and of the BC Supreme Court and the TSX Venture Exchange.
ON BEHALF OF THE BOARD,
Johnathan More, CEO and Director
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, Although the Company intends to undertake a plan of arrangement to spin out certain assets, the actual structure may vary depending on tax and legal implications and the requirements of the TSX Venture Exchange. There is no assurance the proposed transactions will occur in the manner outlined above, or at all.