Power Minerals Limited (ASX:PNN) Expands Rincon Lithium Project through Strategic MOU
Strategic Expansion of Rincon JV
Power Minerals Limited (ASX:PNN) has signed a Binding Memorandum of Understanding (MOU) to expand the Rincon Lithium Project Joint Venture at its Salta Lithium Project in northern Argentina. The MOU involves renegotiating the Rincon JV and Convertible Loan Agreement (CLA) terms with partners Navigate Energy and Legendary Star.
Funding and Acquisition Details
Under the MOU, Navigate Energy’s US$4 million funding will be allocated as follows: US$1.4 million will be used to acquire Power’s Pocitos Project, US$1 million will repay Legendary Star and terminate the CLA, and Power will receive US$400,000 for the Pocitos Project sale. The remaining US$2.6 million will support Rincon JV project development. The Pocitos Project, located 30km south of Rincon, offers existing infrastructure essential for a lithium carbonate production hub. Navigate Energy’s funding is subject to Overseas Direct Investment (ODI) approval from Chinese authorities by 31 March 2025.
Divestment of Santa Ines Copper-Gold Project
Power Minerals has agreed to divest its non-core Santa Ines Copper-Gold Project for A$500,000, with the transaction set to complete on 28 March 2025. This follows a renegotiated sale agreement with Common Destiny Investments Inc after the initial deal with Fuyang Mingjin New Energy Development Co. Ltd. fell through due to ODI approval issues.
Executive Comments
Mena Habib, Managing Director of Power Minerals Limited, stated, “Power’s renegotiation of the Rincon JV, as outlined in the memorandum of understanding with Navigate Energy, has materially advanced the Rincon JV project through the strategic acquisition and incorporation of our Pocitos Project. The infrastructure attributes of the Pocitos Project provide an ideal location for a proposed future lithium producing and operations hub for the Rincon JV. Power is also pleased to agreed on completion arrangements with Fuyang Mingjin to finalise the sale of the Santa Ines Project. This ensures a streamlined transaction process and a clear path forward for both parties, and we are pleased to deliver value from this non-core project.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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