Winsome Secures 16.1% Stake in Power Metals, Cementing Canadian Critical Minerals Play
Winsome Resources has completed its share entitlement in Power Metals Corp, now holding a 16.1% stake and retaining key offtake rights for lithium and other critical minerals from Power Metals’ Ontario project.
- Issued 17.65 million Power Metals shares to Winsome
- Winsome holds 16.1% equity, largest shareholder status confirmed
- Shares issued at C$0.31 each, totaling approximately C$5.47 million
- Retains 100% offtake rights for lithium, caesium, and tantalum from Case Lake Project
- Finalizes entitlement from Decelles and Mazerac project sale agreement
Strategic Equity Boost
Winsome Resources Limited (ASX, WR1) has officially received 17,650,000 common shares in Power Metals Corp (TSXV, PWM), marking the completion of its entitlement under the 2023 sale agreement for the Decelles and Mazerac projects. This issuance, approved by the TSX Venture Exchange, values the shares at a deemed price of C$0.31 each, representing a total consideration of approximately C$5.47 million.
With this transaction, Winsome solidifies its position as the largest shareholder in Power Metals, now holding a 16.1% equity interest. This stake not only reflects a significant financial investment but also underscores Winsome’s strategic commitment to expanding its footprint in Canada’s critical minerals sector.
Offtake Rights and Project Exposure
Beyond equity, Winsome retains 100% offtake rights for lithium, caesium, and tantalum from Power Metals’ Case Lake Project in Ontario. These rights are particularly valuable given the growing global demand for lithium and associated critical minerals, essential components in battery technologies and clean energy applications.
The completion of this share issuance finalizes Winsome’s entitlements from the earlier sale of the Decelles and Mazerac projects, further enhancing its exposure to critical mineral assets across Canada. This aligns with Winsome’s broader strategy of leveraging both equity stakes and offtake agreements to maximize value from its resource portfolio.
Positioning in the Canadian Market
Winsome’s Canadian focus is anchored by its flagship Adina Lithium Project in Quebec, a high-quality spodumene deposit with a substantial mineral resource and a long project life. The addition of a significant stake in Power Metals complements this by providing access to additional critical mineral resources in Ontario, broadening the company’s geographic and commodity exposure.
Market watchers will note that this move not only strengthens Winsome’s asset base but also positions it to benefit from the increasing strategic importance of critical minerals in North America’s supply chains. The combination of equity ownership and offtake rights offers multiple avenues for future value creation.
Looking Ahead
While the announcement does not detail immediate operational plans for the Case Lake Project, the consolidation of ownership and offtake rights sets the stage for potential development and monetization opportunities. Investors will be keen to monitor how Winsome leverages this position amid evolving market dynamics and regulatory environments.
Bottom Line?
Winsome’s expanded stake and offtake rights in Power Metals deepen its critical minerals exposure, setting up a pivotal growth phase in Canada’s resource sector.
Questions in the middle?
- What are Winsome’s plans for advancing the Case Lake Project with its new offtake rights?
- How might Power Metals’ share price and operational progress impact Winsome’s valuation?
- Will Winsome pursue further acquisitions or partnerships to complement its Canadian critical minerals portfolio?
