Power Minerals (ASX:PNN) via its joint venture will receive US$4 million ($6.17 million) from Navigate Energy to develop the Rincon Project in Argentina.
Power Minerals will transfer the Pocitos Project into the Rincon JV, allowing the entity access to infrastructure such as rail networks leading to Pacific and Atlantic ports, power, and a freshwater source.
The parties have finalised documentation required to support the incorporation of the Rincon JV project company. The documents are expected to be lodged with the relevant Argentinian government body in the coming weeks and the Rincon JV entity will then open a bank account to receive the initial US$1 million investment capital from Navigate Energy, which represents 25% of the capital contribution required under Argentinian law to complete the incorporation.
Banking arrangements are in place with Industrial and Commercial Bank of China (Salta branch) (ICBC), supported by ICBC satisfaction of KYC anti-money laundering requirements.
The final step in the incorporation process is for the Notary Public to request the Salta Mining Court to issue a certificate of currency for the Rincon Project tenure (and Notary Public, together with the parties authorised attorneys, signing the Public Deed).
Following lodgement of the executed Public Deed with the relevant regulator by the Notary Public, Navigate Energy’s US$4 million investment funding will be progressively remitted to the JV account by Navigate to fund the development of the project.
Following receipt of the initial investment capital, Power and Navigate Energy will advance development of the pilot plant, and progress broader project development activities.
Power will then transfer the Pocitos project into the JV entity. Pocitos provides access to existing infrastructure support, including rail networks to Pacific and Atlantic ports, power, and a freshwater source.
Access to fresh water is essential to lithium brine processing and a key component to the overall development of the Rincon Project.
Power Minerals Managing Director Mena Habib says the completion of merging the Rincon joint venture company and transferring the mineral tenure confirms a “strong” working relationship between the two parties that will realise shareholder value.
“With incorporation of the Rincon joint venture company expected to be complete in the coming weeks, Power and Navigate Energy will action the development of a lithium brine pilot and early stage project development activities at the Rincon Lithium Joint Venture Project,” Habib says.
After obtaining this investment from Navigate, the two companies will streamline the development of a pilot plant at the Rincon Project. Funds will be released in fragments to ensure funding is tied to agreed project costs.
The agreement incorporated the Rincon JV entity in a binding memorandum of understanding in February 2025, following on from the originally signed agreement in September 2024.
Located in the Salta province of Argentina, the Rincon Project is located within Power Mineral’s greater tenure. Rincon JV intends to source lithium brine from the Rincon Project, to be processed at the nearby Pocitos production hub, located 30km south.
Lithium plays a key role in the global shift towards net zero for its use in electric vehicles, clean energy storage, and battery energy storage systems.
The demand for batteries is forecast to increase by 35% in 2030, as almost every second car sold is expected to be a battery electric vehicle, as reported by Mining.com.au.
As reported by Mining.com.au, the company has set its sights on the OTCQB Market, beginning the listing process last month to match its strategy to become a “globally recognised developer of heavy rare earths”.
Power Minerals is focused on exploring and developing critical minerals in South America.
Write to Maddison Elliott at Mining.com.au
Images: Power Minerals
