Power Minerals (ASX:PNN) is entering into a strategic partnership with Brazilian miner and developer EDEM to limit costs in the exploration of the Santa Anna Project in Goiás State of central Brazil with the option to acquire the project.
Privately held EDEM will provide an auger drill rig and personnel at a reduced rate to Power, allowing the company to cover laboratory sample and drilling analysis costs for the program.
Working together to assess the potential of future partnerships and opportunities within EDEM’s portfolio, Power will prioritise the development of the project’s critical minerals whilst its partner focuses on phosphate potential.
The initial campaign will include at least 2,000m of reverse circulation drilling to confirm an exploration target identified in the 2012 JORC Code.
Power has signed a letter of intent to bind its exclusive option to acquire the project in whole, once drilling commences. Subject to results of the drilling program, the company will conduct further drilling to delineate its maiden resource estimate following the completion of the acquisition.
Managing Director Mena Habib says the strategic partnership is beneficial to both companies.
“The chance to secure a project opportunity such as Santa Anna is rare, and being able to tap into the expertise, knowledge and local network of EDEM would certainly help us accelerate work on the project, if our due diligence stacks up and we move ahead with its acquisition,” Habib says.
“EDEM has been looking for a partner to work with on this project and can provide Power with support that would vastly increase our ability to move Santa Anna forward and deliver value to our shareholders.”
EDEM is a Brazilian miner and developer with more than 30 years of geological and operational experience. The company originally discovered the Santa Anna Project in 2021.
Power Minerals is an exploration company assessing mineral belts across its portfolio of projects in Argentina and South Australia.
Write to Maddison Elliott at Mining.com.au
Images: Power Minerals
