Power Metals Corp V.PWM

Relation to Winsome Resources

[VercrusseC]

Trader, thank you for your valuable contributions.

I wonder what the impact is of their contract with Winsome Resources, and more special this part "
Under the agreement, Winsome will also acquire Sinomine’s offtake rights for the lithium, caesium and tantalum from the Power Metals-owned Case Lake Project in Ontario, Canada.Winsome will also obtain Sinomine’s rights and obligations signed between Sinomine and Power Metals in March 2022."

What does it mean for interested parties?  they can never buy directly from Power? and what if a major mining wants to buy Power metals?  It seems only to be valid for Case Lake and not the others ...

This must have an impact on the valuation of the company.  In my interpretation a buyer is not free to do with the metals whats he want.

What do you think? or others.

[trader53]

Their is a clause in the contract that states if either party walks away from the agreement a settlement of $8,000,000 must be paid. PWM could hold this clause over Winsome if they decided to play hardball on any deal but I doubt that would happen. Chances are an initial strategic partnership would iron out these details upfront.

[itntdf]

PWM  is no better or worse off than they were before. sinomine took a 7.5 million share position (6.72% of PWM's issued capital) as well as 7.5 million share purchase warrants convertable on a one-for-one basis at CAD $0.40/share, expiring on March 17, 2025.   sinomine had the off-take rights for all future lithium, caesium and tantalum extracted or otherwise produced by PWM

[frewil11]

Ya this would be no issue at all with another company , it is basically a 5 % royalty fee for Winsome and like a poster pointed out they can  get out of that agreement.