Power Metallic Mines Inc (TSX-V:PNPN, OTCQB:PNPNF) told investors that it has closed its previously announced agreement to acquire a 100% interest in 313 mineral claims from Li-FT Power, expanding its Nisk property in Quebec.
The acquired claims total 167 square kilometres and bring the company’s Nisk camp to approximately 212.86 km² of land, including 20 kilometres of strike on the northern basin margin and 30 kilometres on the southern margin.
The area includes the Nisk, Lion, and Tiger discoveries.
The company said final closing conditions have been met, including approval from the TSX Venture Exchange.
As part of the agreement, Power Metallic made a $700,000 cash payment to Li-FT and issued 6 million shares. All shares are subject to a four-month statutory hold period under Canadian securities laws, with 3 million of the shares also subject to a 12-month transfer restriction.
Li-FT retains a 0.5% net smelter return royalty on the acquired claims. Certain claims are also subject to existing underlying royalties and, in some instances, buyback rights originating from previous agreements with prior vendors.