- Power Minerals (PNN) enters a memorandum of understanding (MoU) with battery metals supply chain company Xiamen Xiangyu New Energy
- The companies will conduct due diligence on Power’s Salta lithium-brine project in Argentina with the goal of executing a binding offtake agreement, subject to certain conditions
- PNN Executive Director Mena Habib says the MoU marks another “significant step forward” in developing the Salta project
- PNN shares are up 4.82 per cent to trade at 43.5 cents at 1:09 pm AEST
Power Minerals (PNN) has entered a non-binding memorandum of understanding (MoU) with Xiamen Xiangyu New Energy.
Xiamen Xiangyu is part of Xiamen Xiangyu Co, a Fortune-500 company listed on the Shanghai Stock Exchange. The China-based company provides supply chain solutions for battery metals and sources the supply of lithium, nickel and cobalt for battery and vehicle manufacturers.
Under this agreement, the companies will conduct due diligence on Power’s Salta lithium-brine project which lies within the Salta province in the lithium triangle of north-west Argentina.
The companies may also pursue negotiations with the aim of executing a binding offtake, funding and logistics agreement.
Entering negotiations for a binding agreement is subject to certain conditions including the companies being satisfied with the due diligence and Power’s board approving the transaction.
The ASX-lister must also secure all permits and approvals to produce and export lithium concentrate and/or raw brine from the Salta project.
“This MoU represents another significant step forward in Power’s development and monetisation plans for the Salta Project,” Power Minerals Executive Director Mena Habib said.
“Xiamen Xiangyu is vastly experienced in the provision of closed-loop supply chain solutions for battery metals, and we look forward to working with them to fast-track the development of the Salta Lithium Project.”
The companies have allowed a six-month timeframe to sign the binding agreement, however, there’s no guarantee a binding deal will be entered into.
PNN shares were up 4.82 per cent to trade at 43.5 cents at 1:09 pm AEST.