The TSX Venture Exchange has approved Power Metallic Mines’ (TSX-V:PNPN) acquisition to wholly acquire 313 mineral claims from Li-FT Power (TSX-V:LIFT), adjoining its flagship Nisk Project in Québec.
Li-FT Power’s claims lie along the northern basin margin for a 20km strike, while also enveloping the Nisk, Lion, and Tiger discoveries at the southern margin along a 30km strike.
The company will pay $700,000 cash and issue 6 million shares for Li-FT Power to retain 0.5% net smelter return on the royalties of the property.
As previously reported by Mining.com.au, the close of this deal will allow Power Metallic to expand its land position by more than 300% with the additional 167km2 in claims.
Power Metallic, which has a market capitalisation of C$252.53 million ($282.48 million), intends to integrate the newly acquired claims into its 100,000m drill program, where a rig has been collared for drilling to begin shortly with a core facility capacity to be bolstered to six drills in September.
CEO Terry Lynch believes the adaption of new claims will allow Nisk’s geological insights to be applied across a district-scale footprint.
“With over 100,000 metres of fully funded drilling in front of us, we can systematically approach new sulphide occurrences while continuing to grow our established resources,” Lynch says.
The company will release a more detailed exploration plan within the next two weeks.
Power Metallic is focused on developing its Nisk Project to become Canada’s next polymetallic mine in Nemaska, Québec.
Write to Maddison Elliott at Mining.com.au
Images: Power Metallic Mines
