How is Winsome Resources Increasing Its Stake in Power Metals Corp?
Winsome Resources Limited
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How is Winsome Resources Increasing Its Stake in Power Metals Corp?

Winsome Resources (ASX:WR1), a lithium exploration and development company, is making significant progress in increasing its stake in Power Metals Corp ("PWM"). Under the terms agreed upon, Winsome will transfer its ownership in the Decelles and Mazérac projects to PWM, allowing Winsome's stake in PWM to nearly double from its current 9. 94% shareholding.

Focusing on Adina's Hard-Rock Lithium Discovery

Winsome is directing its attention towards the development of its globally significant hard-rock lithium discovery at Adina. In line with this focus, the company has chosen to divest its interests in the Decelles and Mazérac projects located in Quebec, Canada. By transferring these projects to PWM, Winsome aims to consolidate its resources and concentrate on maximizing the potential of its Adina lithium asset.

Future Royalty Obligations

As part of the agreement, PWM will assume the future royalty obligations for the Decelles and Mazérac projects.

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This means that any potential royalty payments from these projects will now be the responsibility of PWM, allowing Winsome to streamline its financial commitments and prioritize the advancement of its primary asset.

Decelles and Mazérac Projects Overview

The Decelles project is situated in an area spanning 385 square kilometers, holding 669 claims in close proximity to the mining centers of Val-d'Or and Rouyn-Noranda, approximately 600 kilometers from Montreal. On the other hand, the Mazérac project covers 149 square kilometers with 259 claims, located less than 30 kilometers east of the Decelles project. These projects present significant exploration potential for lithium resources.

Expanding Influence in PWM

By increasing its stake in PWM through the transfer of the Decelles and Mazérac projects, Winsome Resources aims to strengthen its position in the TSX-V and FSE-listed company. This strategic move aligns with Winsome's objective of maximizing the value of its lithium assets and capitalizing on the growing demand for lithium in various industries, including electric vehicles and renewable energy storage.

As Winsome Resources continues to focus on its world-class hard-rock lithium discovery at Adina, the company's increased stake in PWM provides an opportunity for enhanced collaboration and synergy between the two companies. Investors and stakeholders lookout for further updates on Winsome's progress in developing its lithium assets and expanding its presence in the lithium market.

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