Mingjin New Energy Development now holds 8.45% of the company. Pic: via Getty Images.
$2.6m strategic investment to drive Power Minerals’ ‘aggressive’ Argentinian lithium strategy
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- Active lithium-sector institutional investor secures 8.45% stake in PNN for $2.6m
- Funds will accelerate exploration and development at Salta lithium project
- Project sits within leading brine-region in lithium triangle in Argentina
- Mineral resource expansion drilling is underway
Lithium sector investor Mingjin New Energy Development has finalised its $2.6m strategic investment in emerging lithium brine play Power Minerals, as announced back in May.
The funds will be used to accelerate development of the company’s lithium projects at the 480,000t LCE (and growing) Salta asset in the lithium triangle of north-west Argentina, the world’s leading lithium-brine region.
The two parties have also indicated that they will initiate offtake discussions in respect of the Salta Project in due course.
The project consists of five salares (salt lakes) that sit within seven mining leases, over a total project area of 147.07km2.
Notably, the project’s Incahuasi salar is immediately adjacent to Ganfeng Lithium’s project and the Rincon salar is adjacent to Rincon Mining, recently acquired by Rio Tinto for US$825 million.
Cornerstone investor in the company
Mingjin has subscribed for 6.5m shares at $0.40 per share via a placement to raise $2.6m and now hold 8.45% of the issued equity capital of Power Minerals (ASX:PNN).
Based in Anhui Province, East China, Mingjin focuses its investment on the renewable energy and EV sector, particularly in lithium carbonate production, battery manufacturing technologies and EV making.
It is an active institutional investor in the lithium sector, and has cornerstone equity investments in fellow ASX-listed juniors Octava Minerals (ASX:OCT) and Patagonia Lithium (ASX:PL3), holding ~15% and 17% respectively.
The motivation of its investment in upstream lithium exploration and extraction businesses such as Power is to help them secure future raw materials supplies.
Mingjin is also keen to enter into offtake discussions with Power when the company is ready.
It’s an option that Power is excited to follow up on in future, with offtake agreements a crucial step in progressing a project towards development.
“We are excited to confirm the completion of this strategic placement from Fuyang Mingjin New Energy Development Co. and are delighted to welcome them as a cornerstone investor,” Power MD Mena Habib said.
“Mingjin is an active institutional investor in the lithium sector, and we are aligned with them on our view of the upside potential of, and development plans for, our Argentinian lithium assets.
“The funds will be utilised to continue Power’s aggressive exploration and development of our Salta lithium project.”
Direct lithium extraction plans
Power recently inked a binding term sheet with leading Canadian direct lithium extraction (DLE) technology provider Summit Nanotech Corporation for the funding of up to US$3 million and development of the Incahuasi salar at Salta.
The DLE technology extracts highquality lithium from brine using a sorbent and water recovery solution, making way for a sustainable alternative to the traditional extraction process.
Tests to date have delivered high recoveries of ~98% Li, with an impurity rejection rate of 92 to 99%.
Summit will now commence pilot-plant testing of Incahuasi brine to scale-up processing and facilitate flow sheet development; including engineering design and costing for a PFS to progress Incahuasi development.
Mineral resource expansion drilling
In May, Power Minerals announced a maiden mineral resource of 249,308 tonnes lithium carbonate equivalent (LCE) at 198 mg/l lithium concentration for the Incahuasi salar, more than doubling Salta’s total mineral resource to 488,308t LCE.
But that’s not where the resource expansion plans end. Mineral resource drilling is currently underway at the Rincon Salar, with the third drill hole successfully drilled to a depth of 500m – with results on lithium grades currently pending.
In addition, brine samples taken from 21 packer tests at selected intervals to a depth of 480 metres have shown positive indications on porosity and high yielding flow rates.
This article was developed in collaboration with Power Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
