Power Metal Resources PLC (AIM:POW) has announced the early completion of the Authier North Lithium Project Earn-In, securing a 100% interest in the Authier North and Duval East mining properties in Quebec, Canada.
The AIM-listed exploration and development company will issue equity in place of professional fees.
Power Metal has already fulfilled the cash and equity payments required upon signing the original agreement, as well as the subsequent year's payments and the year-one exploration spend commitment.
It has now reached an agreement with Eagle Ridge Mining, noted as the vendor in this agreement.
All further commitments necessary to achieve the 100% Earn-In will be fully met as outlined in the original Earn-In agreement.
The remaining obligations will be satisfied through the following cash and equity payments:
- A cash payment of CAD$25,000 (£14,500) to the vendor.
- Issuance of CAD$75,000 worth of shares to the vendor. This translates to the issuance of 6,225,392 new ordinary shares of 0.1p nominal value
- The exploration commitments for years two and three, amounting to CAD$50,000 and CAD$100,000 respectively, have been waived
The properties are subject to an existing 1% net smelter royalty which will remain in effect. As per the original Earn-In agreement, Power Metal will also grant the vendors an additional 1.25% net smelter royalty.
Half a percent of the vendor’s net smelter royalty can be repurchased by Power Metal Canada at any time for CAD$500,000 in cash.
In a separate development, Power Metal will settle professional fees totalling £65,000 by issuing 9,208,951 new ordinary shares of 0.1p to SP Angel and another corporate advisor.