MGX Minerals Inc (CNSX: XMG), the petrolithium firm, has entered a deal with Power Metals Corp, which will extend and expand MGX's lithium portfolio.
The group will acquire all of Power's current US Petrolithium brine assets, which includes the joint venture Power struck with American Potash Corp to explore and develop lithium brines on 13,520 acres in the prime Paradox Basin area of Utah.
It also includes the Coyote project - 150 placer mineral claims covering an area of 3,000 acres, on trend and adjoining the Lisbon Valley oil and gas field, Utah.
MGX will also take a 20% working interest in all of Power's current hard rock assets and any future assets that the firm acquires. These are at Case Lake, Paterson Lake, Gullwing-Tot Lake and Larder River - in Ontario.
MGX will have the right to buy a further 15% working interest of the group's hard rock assets for 36 months for a total of C$10mln and receive a call option to buy up to 10mln Power shares for three years.
MGX will issue Power with 3mln of its shares which will be restictyeds to 1mln shares issued every 5 months from the signing of the definitive agreement.
Jonathan More, Power Metals' chairman, said: "We are pleased to have signed this deal with MGX Minerals, unquestionably the leader in the petrolithium space.
"Aligning ourselves to participate in the evolution of the new energy industry, our shareholders will be best served with our asset package being shepherded by MGX.
"At the technical forefront of the lithium industry, MGX's drive and domain expertise have the potential to drive value for related participants."
He added that the partnership would allow Power to focus on its marquee Case Lake hard rock pegmatite asset with drilling beginning in the coming days followed by metallurgy work by MGX using its new technology applied to the lithium hard rock prospect.
"Additionally, our shareholders will continue to benefit and see potential upside in these petrolithium assets being run by MGX through the large share position PWM will own in their company."