Power Minerals (ASX:PNN) has unveiled its latest power move in Week 13, with the South American-focused critical minerals explorer today drawing up a term sheet with Summit Explore Corp to co-develop the “world’s first multi-salar lithium project” in Salta, in Argentina’s lithium triangle.
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The deal establishes a framework for the investment and commercialisation of five lithium brine salars, Incahausi, Rincon, Pocitos, Pular, and Arizaro.
Under the proposed terms agreed between the two parties this week, Explore has the option to form a joint venture by acquiring a 59% interest in the projects. Power Minerals would retain the remaining 41% interest.
From Explore’s side, the interested corporation has to fund and construct a 5,000-tonne commercial Direct Lithium Extraction (DLE) plant.
“We’re delighted to be working with Explore and Summit to progress the proposed transaction, which consolidates the development of all four of Power’s Argentinian lithium brine projects,” Power’s MD, Mena Habib, said.
Ms Habib said Explore and Summit are “ideal partners” because they can help Power unlock and maximise the value of all five salars as quickly as possible.
Key to that is their leading-edge proprietary DLE tech and development expertise.
The opportunity to work together is a pivotal step for Power towards producing commercial-scale volumes of high-quality lithium products from Power’s Argentinian Lithium projects,” she continued.
“Power looks forward to completing this transaction with Explore, which builds on a long and mutually rewarding working relationship with Summit.”
As part of the earn-in obligations, Explore now plans to provide up to US$6 million in strategic investment. This funding will cover water drilling and pumping wells, mineral resource drilling, and the expected delivery of a Preliminary Feasibility Study compliant with Canadian NI 43-101 standards.
Technical validation will be supported by Summit’s Alpaca DLE demo facility in Chile, which will conduct brine compatibility and extraction efficiency studies.
(Should the deal not go ahead, Explore will still be on the hook for US$1m in standby payments to maintain the agreement in good standing.)
From Summit’s CEO, Amanda Hall, today: By launching Summit Explore, and working with Power, we begin our land and expand strategy to become a major lithium producer in South America’s beautiful lithium triangle.”
At time of writing, PNN shares are fetching 10c/ea.
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