Power Minerals Limited (ASX:PNN) Secures ODI Approval for Rincon JV
ODI Approval Granted
Power Minerals Limited (ASX:PNN) has secured overseas direct investment (ODI) approval for its Rincon Lithium Project Joint Venture within the Salta Lithium Project. This approval allows Navigate Energy to release US$4 million in funding to advance the Rincon JV.
Funding and Project Development
Under the ODI Approval, US$1 million will repay the Convertible Loan from Legendary Star, and US$400,000 will be paid to Power as consideration for acquiring the Pocitos Lithium Project. The remaining US$2.6 million will be deployed for project development.
Settlement with Ultra Lithium
Power Minerals has varied the repayment terms with Ultra Lithium Inc., agreeing to receive A$50,000 on 21 March 2025, two further payments of A$50,000 on 15 April 2025, and a final payment of A$100,000 on 30 April 2025 to conclude the Convertible Loan Agreement.
Executive Comments
Mena Habib, Managing Director of Power Minerals Limited, stated, “Securing ODI Approval is a major material milestone and endorsement of the Rincon Joint Venture. It unlocks the US$4 million in funding to be provided to the joint venture by our joint venture partner Navigate Energy, with US$1 million to be utilised to payout the Convertible Loan commitment and US$400,000 to be paid to Power as consideration for the joint venture’s acquisition of the Pocitos Project. The balance of funds will be deployed for Rincon JV project development. With ODI Approval granted, we are also able to move forward to finalise the incorporation of the Rincon Project joint venture company, and, once done, release funds to the joint venture and commence project development work programs.”
Motley Fool contributor Abbie Stokes 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 recommended BHP Group. 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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