Power Minerals (ASX:PNN) has received a strategic investment of $2.6 million from lithium sector investor Fuyang Mingjin New Energy Development.
Power, which has a $17.93 million market capitalisation, says the funds will be used to accelerate the development of its lithium assets, including the Salta Project in the lithium triangle of Argentina.
Mingjin is now a part of Power’s share register, holding 8.45% in the issued equity capital of the company.
Under the binding Subscription Agreement between the companies, Mingjin invested the $2.6 million in Power via a placement of 6.5 million ordinary shares at an issue price of $0.40 per share.
At 12:30pm AEST on Thursday 31 August, Power Minerals shares were up 10.2% to $0.27.
Commenting on the investment, Power Minerals Managing Director Mena Habib says: “We are excited to confirm the completion of this strategic placement from Fuyang Mingjin New Energy Development Co. Ltd and are delighted to welcome them as a cornerstone investor in Power Minerals.
“The funds will be utilised to continue Power’s aggressive exploration and development of our Salt Lithium Project“
Mingjin is an active institutional investor in the lithium sector, and we are aligned with them on our view of the upside potential of, and development plans for, our Argentinian lithium assets. The funds will be utilised to continue Power’s aggressive exploration and development of our Salt Lithium Project.”
The Salta Project comprises 5 salt lakes that sit within 7 mining leases over a 147.7km-square area.
Mingjin is an active institutional investor in the lithium sector and has cornerstone equity investments in other ASX-listed companies Octava Minerals (ASX:OCT) and Patagonia Lithium (ASX:PL3).
Power Minerals is a lithium-focused explorer and developer. The company’s core asset is the Salta Lithium Brine Project located in the prolific lithium triangle in Argentina. As of 30 June 2023, the company had $2.373 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Power Minerals
