- Power Minerals (PNN) locks in a strategic investment of $2.6 million through a share placement to experienced lithium investor Fuyang Mingjin New Energy Development
- The funds will go towards the development of PNN’s lithium assets in Argentina, including its Salta lithium project
- Under the funding deal, China-based Mingjin will buy 6.5 million PNN shares at 40 cents per share
- Following the placement, Mingjin will hold an 8.9 per cent stake in Power Minerals
- Shares in PNN are up 1.23 per cent and trading at 41 cents at midday AEST
Power Minerals (PNN) has secured an investment of $2.6 million through a share placement to experienced China-based lithium investor Fuyang Mingjin New Energy Development.
PNN said it would use the funds to accelerate the development of its lithium assets in Argentina.
Both parties have entered a binding subscription agreement whereby Mingjin will purchase 6.5 million ordinary PNN shares at 40 cents per share.
Power Minerals Managing Director Mena Habib said the company was “delighted” to welcome the investment from an experienced ASX-lithium investor like Mingjin.
“We envisage Mingjin’s investment as being the starting point of a long and mutually beneficial relationship between Power and Mingjin,” Mr Habib said.
On the completion of the placement, Mingjin will hold an 8.9 per cent stake in the issued equity capital of Power Minerals.
“They share a common goal with the company: to drive the development of the Salta lithium project to produce a quality lithium product for the massive global EV battery market, and deliver significant value for shareholders,” Mr Habib added.
Mingjin has other cornerstone equity investments in ASX-listed Octava Minerals (OCT) and Patagonia Lithium (PL3).
Power’s Argentinian assets include its Salta lithium project, which lies within the ‘Lithium Triangle’ — the world’s leading lithium-brine region.
Shares in PNN were up 1.23 per cent and trading at 41 cents at midday AEST.