Lithium explorer Power Minerals (ASX:PNN) has confirmed that a $3.125 million investment from Summit Nanotech is about to hit its bank account.
The investment marks the first tranche of 2 to be paid by Summit under a binding term sheet signed in August for a partnership to develop the Incahuasi salar at Power’s Salta Lithium Project in Argentina. As part of the deal, Summit is set to invest US$3 million (about A$4.75 million) into Power.
Summit has officially transferred the first tranche, and the 2 companies will now move on to execute an option and joint venture (JV) arrangement for the funding and development of the Incahuasi salar.
Power says it will use the funding boost to expand the Incahuasi mineral resource and for pumping water wells, water drilling, and engineering studies ahead of a planned Prefeasibility Study (PFS) for the salar.
Power Minerals Managing Director Mena Habib says this first payment represents a ‘significant’ step forward for the company and its partnership with Summit Nanotech.
“The transfer of the first tranche of Summit’s strategic investment comes after Summit successfully completed due diligence and Power secured shareholder approval. We now look forward to deploying the funds to accelerate the development of the Incahuasi salar.
“Summit and its patented and sustainable denaLi DLE technology is the ideal partner to help us unlock the value of the Incahuasi salar“
Summit and its patented and sustainable denaLi direct lithium extraction (DLE) technology is the ideal partner to help us unlock the value of the Incahuasi salar and realise our goal of producing commercial-scale volumes of high-quality lithium from Incahuasi.”
Summit’s direct lithium extraction tech is designed to efficiently produce lithium from brine with ‘best-in-class’ low freshwater use, minimal consumables and greenhouse gases, and low power consumption.
According to Power, Summit’s technology has been proven to produce a greater-than-95% lithium recovery and over 98% impurity reduction.
Through the JV between the two companies, Power and Summit will look to combine this DLE technology with Power’s expertise in exploration and project development.
Power Minerals had $2.36 million cash and cash equivalents at hand as of 30 September, according to its latest quarterly report. The company has a $20.72 million market capitalisation.
Write to Joshua Smith at Mining.com.au
Images: Power Minerals
