POWER METALS REACHES CESIUM CONCENTRATE OFFTAKE AGREEMENT WITH ALBEMARLE
Major Highlights
- Power Metals secures significant commercial milestones with Albemarle Corporation, one of the world's leading critical-minerals companies, which has acquired the current offtake agreement from Winsome Resources (ASX: WR1) for the Case Lake Project
- Deal sees Albemarle purchase Winsome Resources offtake rights in Power Metals Corp's Case Lake Project
- Case Lake hosts near-surface, high-grade cesium with Albemarle securing the rights to all Project offtake
- Under the offtake agreement, Albemarle has agreed to prepay for up to CAD$5 Million of cesium oxide concentrate from the Case Lake Project
- Agreement delivers clear benefits to existing Power Metals shareholders by providing access to project funding through a fully non-dilutive transaction structure
- Case Lake is currently advancing towards its production target for 2026
VANCOUVER, BC, Dec. 12, 2025 /CNW/ - Power Metals Corp ("Power Metals" or the "Company") (TSXV: PWM) (FRANKFURT: OAA1) (OTCQB: PWRMF) is pleased to announce Albemarle Corporation ("Albemarle") has agreed to a CAD$5 Million pre-payment arrangement for cesium oxide concentrate from the Company's Case Lake Project ("the Project") in Ontario, Canada.
The milestone involves Albemarle also acquiring current offtake rights held by Winsome Resources (ASX: WR1), marking a significant endorsement from one of the world's leading critical-minerals companies.
It also underscores the growing importance of Case Lake as a strategic asset and the role it is poised to play in securing North America's cesium supply chain.
Pursuant to a purchase agreement between Winsome and Albemarle, Winsome is assigning its Case Lake offtake rights to Albemarle. Winsome will retain its 15.8% shareholding of Power Metals and looks forward to continued collaboration with both PWM and Albemarle as the Project advances.
The offtake rights were previously held by Hong Kong based Sinomine Resources Limited in 2020¹, before being rescinded through intervention by the Government of Canada in 2022², at which point Winsome Resources acquired the rights³.
The agreement highlights a clear shift in the global critical-minerals landscape, with an increased focus on securing the North American supply chains.
The pre-payment commitment is conditional on Power Metals securing necessary approvals and permits to commence mining at Case Lake, and provides financing in stages as key development milestones are achieved:
- CAD$2,000,000 promptly following execution of the pre-payment commitment.
- CAD$3,000,000 upon delivery of Environmental Compliance Approval (ECA) for the Case Lake Project in 2026.
The transaction strengthens Power Metals position as a key player in the global cesium market, with the project now backed by one of the sector's most influential producers.
¹See Power Metals (TSX-V: PWM) Announcements dated 8 September 2020 |
²See Power Metals (TSX-V: PWM) Announcements dated 3 November 2022 |
³See Power Metals (TSX-V: PWM) Announcements dated 2 December 2022 |
Power Metals CEO and Director, Haydn Daxter Commented:
"We are incredibly pleased with Albemarle's participation as we continue to strengthen our footprint in Canada for critical minerals. Albemarle's expertise in producing high-value cesium chemicals secures the downstream component of our strategy while bolstering the emergence of an integrated cesium market."
Power Metals Chairman and Director, Johnathan More Commented:
"This agreement is a significant step for Power Metals and a strong outcome for our shareholders. The pre-payment structure provides access to funding without dilution, allowing us to advance Case Lake while preserving the value of the Company. With the Project's extremely low capital requirements, under CAD$8 million required, this support positions us well to move toward production and unlock the full potential of our cesium opportunity."
-ON BEHALF OF THE BOARD-
Johnathan More, Chairman & Director
Case Lake Property
The Case Lake Property is located 80 km east of Cochrane in northeastern Ontario, near the Ontario Quebec border. It comprises 586 cell claims across Steele, Case, Scapa, Pliny, Abbotsford and Challies townships within the Larder Lake Mining Division. The Property is 10km by 9.5km in size with 14 granitic domes.
The Case Lake pegmatite swarm consists of six spodumene dykes known as the North, Main, South, East and Northeast dykes on the Henry Dome, and the West Joe dyke on a new dome, collectively forming mineralization trend that extends for approximately 10km (Figure 1).
Power Metals has completed several exploration campaigns leading to the discovery and expansion of new and historic spodumene bearing LCT pegmatites at Case Lake. The Company has drilled a total of 23,976 meters of core between 2017 and 2024 at the Property. The Case Lake Property is owned 100% by Power Metals Corp. A National Instrument 43-101 Technical Report has been prepared on Case Lake Property and filed on July 18, 2017 (Figure 1).
Decelles Property
The Decelles Property contains 247 claims, covering 14,229 hectares of LCT prospective ground near the mining centres of Val-dÓr and Rouyn-Noranda, approximately 600km from Montreal.
Power Metals acquired the Decelles and Mazerac properties from Winsome Resources in 2023 in a deal that increased Winsome equity stake in the Company (refer to press release announced on August 24, 2023). The geology of Decelles property is part of the Archean Pontiac sub-province where S-type LCT prospective, pegmatite bearing, granitic Decelles Batholith intrudes into metasedimentary units of the Pontiac Group.
Spodumene and Beryl bearing pegmatites have been reported historically within the Pontiac sub-province in association with S-type garnet-muscovite granite. The Decelles property is adjacent to Vision Lithium's Cadillac property where discovery of high-grade lithium pegmatites was reported in 2022 (Figure 1).
Mazerac Property
The Mazerac Property is located approximately 30 km east of Power Metals Decelles property near well-established mining camps in the Abitibi region of Canada and is accessible by network of mining-grade forestry roads.
The Mazerac property contains 115 claims that cover 6,653 hectares of LCT prospective ground near the mining centre of Val-dÓr and Rouyn-Noranda. The regional geology of Mazerac is similar to Decelles where S-type LCT prospective, pegmatite bearing, granites of Decelles Batholith intrude into metasedimentary units of the Pontiac Group. Spodumene and Beryl bearing pegmatites have been reported historically within the Pontiac sub-province in association with S-type garnet-muscovite granite (Figure 1).
Pollucite and Cesium
Pollucite is a rare mineral that hosts high grade cesium and is associated with highly fractionated, rare element pegmatites. The main source of cesium known globally is pollucite (Cs,Na)₂(Al₂Si₄O₁₂)•2H₂O, (https://www.gov.mb.ca/iem/geo/industrial/pollucite.html). Currently there is no operational mining of high-grade cesium from pollucite occurring globally.
Power Metals Corp (TSX-V: PWM)
Power Metals Corp (TSX-V: PWM) is a Canadian exploration company focused on developing high-quality critical mineral projects. Its flagship Case Lake Property in Ontario – 100 per cent owned by Power Metals - is a high-grade cesium, lithium and tantalum asset.
Beyond Case Lake, the Company's portfolio includes the Decelles and Mazerac Properties near Val-D'Or, Québec. Together, these assets cover 947 claims spanning more than 330km² of lithium-cesium-tantalum (LCT) prospective ground. As global demand for critical minerals continues to grow global, and particularly in North America, Power Metals is strategically advancing its projects to support the continent's growing supply needs. Learn more at www.powermetalscorp.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.
No- securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold in the United States, or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act) unless pursuant to an exemption therefrom. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking information based on current expectations, including the use of funds raised under the Offering. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, Power Metals assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.
Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release.
Actual results could differ materially from those currently anticipated due to several factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSXV has neither reviewed nor approved the contents of this press release.
SOURCE Power Metals Corp.
Power Metals Corp, Johnathan More, 515-401-7479, [email protected]
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