Power Minerals (ASX:PNN) has completed an acquisition for the Lĺtio Niobium Project in Brazil, after finalising technical and legal due diligence.
The project, which covers 27km2, comprises three permits and is considered prospective for niobium, rare earths, and lithium.
Under the binding heads of agreement with Ita Iron Mineracao, Power paid $30,000. Upon completing due diligence, the company will pay $300,000 cash and $270,000 worth of shares.
Power Minerals, which has a market capitalisation of $9.13 million, completed initial sampling, confirming the presence of a niobium-tantalum-rare earths pegmatite intrusion within the project area.
The samples were collected from close to the Lĺtio Project’s southern boundary, which is adjacent to Summit Minerals’ (ASX:SUM) Ecuador Project. Results include 63.7% niobium pentoxide and 9.5% tantalum pentoxide with 2,354 parts per million partial rare earth oxide.
Managing Director Mena Habib says the company will expedite its exploration of the project with a systematic sampling program, including outcrop rock chip and stream samples to prioritise targets and determine prospective areas for drilling or other follow-up activity.
“We are excited to have expanded our footprint in South America, adding to our Salta Lithium Project in Argentina with this strategic acquisition, and look forward to moving forward with exploration on our second project in the region.”
The company adds that the northern part of the permit is considered a high priority area for exploration sampling, given the number of possible pegmatite dykes.
In the coming weeks, Power Minerals plans to systematically map and confirm the possible pegmatites, as well as sample as many pegmatites as possible to determine priority ranking for next stage channel and drilling programs.
Power Minerals is an explorer and developer focused on the development of its lithium assets in the Argentina into lithium producing operations, exploring the Lĺtio Project, and delivering value from its non-core Australian assets.
Write to Aaliyah Rogan at Mining.com.au
Images: Power Minerals
