Winsome Resources (ASX:WR1) has announced an intention to increase its stake in Canadian-listed Power Metals Corp. by participating in a planned capital raising led by Canaccord Genuity Corp.
The additional investment will increase Winsome Resources stake in Power Metals to approximately 10% and will be secured via a Flow-Through Shares Private Placement.
Waratah Capital Advisors, a Canadian-based, battery minerals focused investment company, has also signalled its intention to invest up to C$1.5M in Power Metals.
The companies 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.
Winsome Resources says the investment presents the company with a potential high value revenue opportunity in the future, as the company works towards maiden resources.