Power Metals Files Plan of Arrangement for Spin-Out of Hard Rock Lithium Assets
TSX VENTURE: PWM
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 3, 2017) - Power Metals Corp. ("Power Metals Corp." or the "Company") (TSX VENTURE:PWM) (FRANKFURT:OAA1) is pleased to announce it has entered into an Arrangement Agreement with its newly created, wholly-owned subsidiary, Power Lithium Corp., to carry out a Plan of Arrangement (the "Arrangement"). The Arrangement Agreement is available on the Company`s filings on SEDAR. Through the Arrangement, Power Metals intends to transfer all of its interests in its hard rock lithium properties (the "Properties") to Power Lithium and list that company on the Canadian Stock Exchange (CSE). In addition to the Properties, Power Metals will transfer an amount of cash to Power Lithium in the Arrangement so that it will meet CSE listing requirements for available funds and be in a position to carry out the first year of its work program.
Johnathan More, Chairman of Power Metals states, "There has been an incredible amount of work that has gone into planning this Arrangement as we move forward with the creation of 2 companies from 1. We are committed to maximizing every ounce of value that we can give to shareholders as the creation of Power Lithium Corp. will host our exciting hard rock lithium assets where we intend to begin an aggressive drill program in the very near future. I would like to personally thank all parties that have helped us get to this exciting point in the growth of Power Metals. "
Pursuant to the Plan of Arrangement, Power Metals Corp. shareholders as of the Record Date will receive 1 common share of Power Lithium for every 1 share of Power Metals he or she holds. The Record Date will be established in the Information Circular for the upcoming Power Metals AGM.
The Hard Rock Lithium Properties to be transferred to Power Lithium include the Case Lake, Larder River, Paterson Lake and Gullwing-Tot Lake mineral property claims and interests held by Power Metals as of the closing date of the Arrangement.
The completion of the Arrangement and the listing of Power Lithium on the CSE are subject to the approval of the Power Metals Corp. Shareholders, Supreme Court of British Columbia, TSXV and CSE. There is no guarantee that the Arrangement and listing of Power Lithium on the CSE will be completed.
About Power Metals Corp.
Power Metals Corp. is one of Canada's newest premier mining companies with a mandate to explore, develop and acquire high quality mining projects for minerals contributing to power. We are committed to building an arsenal of projects in both lithium other and clean power fuels. We see an unprecedented opportunity to supply the staggering growth of the lithium battery industry.