Winsome Resources to purchase shares in Power Metals Corp from Sinomine Rare Metals Resources.

Winsome Resources to purchase shares in Power Metals Corp from Sinomine Rare Metals Resources.

Winsome Resources has announced a binding agreement to purchase 7.5M shares in Power Metals Corp (PWM) from Sinomine Rare Metals Resources. 

Blue View

The agreement provides Winsome Resources offtake rights for all future lithium, caesium, and tantalum produced at the Case Lake Project, currently under development.

The sale of Sinomines 5.72% share in PWM is a result of the Canadian government's forced divestment of non-Canadian entities’ shares in several Canadian businesses under the “Investment Canada Act”. The act requires non-Canadian entities investing in Canadian businesses to be reviewed on the nature of the investment and potential impacts on national security.

Lithium prices have been soaring on the back of rising EV demand, with downstream industry players scrambling to secure long-term access to feedstock ahead of anticipated strong demand growth. As a result, the rapid acquisition of PWM’s lithium asset in a geopolitically stable country with proximity to burgeoning EV markets is perhaps unsurprising.

The sale of Sinomine’s shareholding highlights the desired detachment of North American critical materials supply chains from China. As major economic centres improve their domestic capabilities and strengthen ties with allied partners, further examples of countries extending their control over upstream sources of lithium, nickel, cobalt, and other critical materials are likely, with the potential for further forced divestments for foreign parties.

  • 12 Dec 2022
  • Canada
  • China
  • Lithium
  • Tantalum
  • Batteries

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