Power Metal Resources plc has intensified its focus on specialist ‘battery metals’ by acquiring its first graphite project and forming a new UK private battery metals and minerals focused vehicle.
DOERKSEN BAY
The new project of Doerksen Bay covers 4,222 hectares and lies 230km northeast of La Ronge in Saskatchewan, Canada.
The acquisition centres on five Saskatchewan mineral deposit index graphite occurrences including the Ben, Ben North, Bear Bones, Brabant Lake and Doerksen Bay showings.
Power Metal said that the occurrences returned multiple grab samples of graphite bearing gneisses including assays up to 45% carbon and included 36%, 14%, 13%, 12% and 10% carbon.
TERMS
The company purchased the project for £37,500 from a consortium led by prospector Brian Fowler who previously sold the Schreiber-Hemlo properties to Power Metal which sold them in exchange for a strategic holding in First Class Metals plc.
Payment is with 2,500,000 Power Metal new ordinary shares of 0.1p each at an issue price of 1.5p per share.
Following admission, the company’s issued share capital will comprise 1,663,289,092 ordinary shares of 0.1p each, with voting rights.
ION BATTERY RESOURCES
The company said that Doerksen Bay complemented its lithium assets at Authier North-Duval East and North Wind.
All the projects will be held within a newly incorporated special purpose battery commodities vehicle, ION Battery Resources Ltd.
ION Resources will also hold any future potential acquisitions in lithium, graphite and possibly vanadium.
Power Metal added that after a “suitable period of structuring, exploration and development” ION Resources would be available for “outright disposal or listing on an appropriate stock exchange.”
GROUND EXPLORATION
Chief executive Paul Johnson said that Doerksen Bay enabled the company to “create critical mass in specialist battery commodities” through the new holding company.
“We are continuing our desktop research for the project with a view to designing ground exploration to test the extremely high-grade graphite occurrences reported from the project as soon as weather conditions and team availability allows.”