Skull Ridge enters LOI to acquire Power One
Power One’s acquisition LOI resolves its liquidity crisis and establishes a critical metals platform.
Skull Ridge Gold Corp. has signed a non-binding letter of intent to acquire Power One Resources Corp. through a statutory plan of arrangement. Under the proposed terms, Skull Ridge will issue one common share for each common share of Power One, resulting in Power One becoming a wholly owned subsidiary. The transaction aims to consolidate complementary exploration assets to create a broader platform with exposure to uranium, nickel, copper, PGEs, gold, and rare earth elements.
Power One’s portfolio includes the Pecors Property in Ontario’s historic uranium district and the Wicheeda North Property in British Columbia, which is subject to a 75% earn-in option by Primary Hydrogen Corp. A concurrent subscription receipt financing is planned to provide working capital, although the terms and size of the financing remain undetermined.
The parties are targeting a definitive agreement by November 10, 2026, with transaction completion expected by March 31, 2027. The transaction is classified as a related-party matter under National Instrument 61-101, with exemptions sought for formal valuation and minority approval requirements.
Power One Resources Corp. (PWRO) has entered into an acquisition that directly resolves its severe liquidity crisis, which currently stands at $10,178 in cash against a $410,134 working capital deficit. The transaction involves a 1:1 share exchange, providing a clear liquidity event for shareholders, though the ultimate value will depend on Skull Ridge's market valuation and the concurrent financing terms.
The consolidation creates a larger, diversified exploration platform, enhancing strategic appeal and potentially attracting institutional or strategic capital that Power One could not secure independently. While the planned concurrent financing mitigates the immediate going concern risk, dilution and execution risks remain until definitive terms are announced. This development fundamentally alters the company's trajectory, resolves capital constraints, and initiates a merger process that will likely drive significant trading activity.
Power One Resources Corp. (PWRO) is a pre-revenue mineral exploration company. Its flagship asset is the Pecors Property in Ontario's Elliot Lake uranium district, which features a 12km x 4km magnetic anomaly targeting Ni-Cu-PGE, gold, and uranium. The company also holds a secondary asset, the Wicheeda North Property in British Columbia, focused on rare earth elements (REEs), with a 75% earn-in option held by Primary Hydrogen Corp.
Recent exploration highlights include gold discoveries of 1.025 g/t Au over 1.5m. The company also identifies deep-seated geophysical targets, such as Zd1, which are awaiting drilling.