Company Plans To Increase Stake In Power Metals Corp

Winsome Resources (ASX:WR1; “Winsome” or “the Company”) is pleased to announce its intention to increase its stake in Canadian-listed Power Metals Corp. (“Power Metals”) by participating in a planned capital raising led by Canaccord Genuity Corp.

• Winsome Resources intends to increase stake in Power Metals to approximately 10%
• Additional shares to be secured via Flow-Through Shares Private Placement
• Key Winsome shareholder, Waratah Capital Advisors, also intends to invest
• Companies finalising technical cooperation agreement to fast-track drilling and target a maiden resource at Case Lake Project, Ontario

The new investment by Winsome will be secured via a Flow-Through Shares Private Placement being undertaken by Power Metals under the provisions of Canada’s tax laws. The investment by Winsome is subject to certain terms of the placement being met and a further announcement will be made when the shares have been successfully allocated.

Waratah Capital Advisors Ltd. (“Waratah”), a Canadian-based, battery minerals focused investment company, has also signalled its intention to invest up to C$1.5 million in Power Metals through Waratah’s Electrification and Decarbonization AIE LP Fund. Waratah holds interests in multiple lithium and other battery mineral projects around the world, including a key stake in Winsome.

Winsome and Power Metals are also finalising a technical cooperation agreement under which Winsome will provide technical assistance for upcoming exploration and drilling programs at Case Lake, with the aim of establishing a maiden resource as soon as possible.

To date, some 13,000m of drilling has been undertaken across the Case Lake property, with impressive lithium mineralisation encountered³.

Under the offtake agreement acquired by Winsome Resources as part of its original investment in Power Metals, the Company is entitled to all offtake rights for lithium, caesium and tantalum from Case Lake at a 5% discount to the quoted Asian Metal price. This presents Winsome with a potential high value revenue opportunity in the future as the Company works towards maiden resources and with demand for these critical minerals predicted to continue rising.

WINSOME’S MANAGING DIRECTOR CHRIS EVANS SAID:

“Winsome Resources is happy to be involved in this raise with Power Metals Corp, and is pleased to see Waratah also willing to take an interest. The move by Waratah is testament to the high prospectivity of the Case Lake Project and ratifies our intention to help rapidly advance the project.

“We also intend meeting with the Power Metals team at the PDAC conference in Toronto this week to finalise the terms of the technical cooperation agreement, allowing Power Metals to leverage the Winsome team’s significant experience in exploration and drilling of hard rock lithium resources in Canada.

“This work will have no negative impacts on Winsome’s current drilling activities at the Adina and Cancet projects in Quebec, which continue to progress as planned.”

This announcement is authorised for release by the Board of Winsome Resources Limited.

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