Power Minerals (ASX:PNN) has signed a binding memorandum of understanding for the expansion of the Rincon Lithium Project joint venture at the Salta Lithium Project in northern Argentina.
In September 2024, Power Minerals executed a joint venture agreement with Navigate Energy and Legendary Star to develop the Rincon Project. The company has now agreed to re-negotiate the joint venture terms and a convertible loan agreement, via the MoU.
As such, of the US$4 million ($6.3 million) funding to be paid to the joint venture by Navigate Energy, US$400,000 will be used to acquire Power Minerals’ Pocitos Project.
A further US$1 million will be used to repay Legendary Star and terminate the loan agreement.
Power Minerals says the remaining US$2.6 million will be applied to Rincon’s project development work.
The transaction is expected to be completed on the transfer of the Pocitos Project and after receiving overseas direct investment approval from Chinese Government authorities for the investment, alongside incorporating the Rincon joint venture entity in Argentina.
Managing Director Mena Habib says the re-negotiation of the Rincon joint venture has materially advanced the project through the strategic acquisition and incorporation of its Pocitos Project.
“The infrastructure attributes of the Pocitos Project provide an ideal location for a proposed future lithium producing and operations hub for the Rincon JV,” Habib says.
“Power is also pleased to agree on completion arrangements with Fuyang Mingjin to finalise the sale of the Santa Ines Project. This ensures a streamlined transaction process and a clear path forward for both parties, and we are pleased to deliver value from this non-core project.”
Rincon is Power’s most advanced asset within its wider Salta Lithium Project.
Power Minerals is an explorer and developer focused on lithium producing operations in Argentina, as well as niobium assets in Brazil.
Write to Aaliyah Rogan at Mining.com.au
Images: Power Minerals
