Power Metals Closes Brokered Flow-Through Private Placement

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, June 27, 2018 /CNW/ - Power Metals Corp. (the "Company") (TSXV: PWM) (FRANKFURT: OAA1) (OTC: PWRMF) is pleased to announce that, further to its news release of May 30, 2018, it has completed a brokered private placement of 3,448,300 units (each, a "Unit") at a price of $0.58 per Unit for gross proceeds of approximately $2,000,000 (the "Offering").  Eight Capital (the "Agent") acted as agent for the Offering.   Each Unit is comprised of one flow-through common share of the Company (a "Share") and one-half of one flow-through common share purchase warrant (each whole warrant, a "Warrant").  Each Warrant will entitle the holder thereof to acquire one non-flow-through common share of the Company at a price of $0.85 until June 27, 2020.

The Offering was led by Eight Capital, pursuant to the terms of an agency agreement entered into by the Company and the Agent on June 27, 2018 (the "Agency Agreement"). Pursuant to the Agency Agreement, the Agent received a cash commission equal to 6% of the aggregate gross proceeds of the Offering and was granted compensation warrants in an amount equal to 6% of the number of Units issued pursuant to the Offering. Each compensation warrant is exercisable to purchase one unit comprised of one common share and one-half of one common share purchase warrant, at an exercise price of $0.58 until June 27, 2020. 

The Company intends to use the gross proceeds of the Offering for exploration and drilling at its Case Lake Project, such exploration work to constitute qualified Canadian exploration expenses (as defined in the Income Tax Act (Canada)) with the expenses to be renounced for the 2018 taxation year.

All of the securities issued under the private placement are subject to a hold period expiring on October 28, 2018.  

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Power Metals Corp.

Power Metals Corp. is a diversified Canadian mining company with a mandate to explore, develop and acquire high quality mining projects.  It is committed to building an arsenal of projects in both lithium and high-growth specialty metals and minerals. It sees an unprecedented opportunity to supply the tremendous growth of the lithium battery and clean-technology industries. Learn more at www.powermetalscorp.com

ON BEHALF OF THE BOARD,

Johnathan More, Chairman & Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

FORWARD LOOKING INFORMATION

This press release contains forward-looking information based on current expectations, including the use of funds raised under the Offering.  These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, Power Metals assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.

Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to several factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com.

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSXV has neither reviewed nor approved the contents of this press release.

SOURCE Power Metals Corp.