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Power Minerals (ASX:PNN) is weeks away from finalising its “Rincon” lithium joint venture project with Navigate Energy Technology, which will operate in the Salta province in Argentina’s famed lithium triangle.
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Disclaimer: This content has been prepared as part of a partnership with Power Minerals Ltd and is intended for informational purposes only.
Once the last hurdles have been cleared, Power will move ownership of the Rincon Lithium Project, which it’s been advancing for some time, into the JV structure – a “major milestone” for the $23M Aussie explorer. Navigate’s end of the bargain will see it funnel US$4 million in investments into the project.
Those $4 million investments have already been decided, too: The Market Link understands Power will use the new cash pile to build a lithium brine pilot at the Argentinian site and “action early-stage development activities.” The plant, once built, will be used to test Rincon’s brine characteristics.
These will be married to structures at the Pocitos project (also in the deal), which include a rail network to Pacific and Atlantic ports, power, and freshwater sources.
“Completing incorporation and asset transfer confirms Power’s strong relationship with Navigate Energy and is a key step towards realising shareholder value,” Power’s managing director, Mena Habib, said today.
There are still a few steps to sort out, though Power has today confirmed the incorporation of the Argentinian JV entity will be cleared “in the near term.”
Already completed, Power says, is all the necessary documentation for the creation of the lithium joint venture company, including requirements under Argentinian laws for both incorporation and mineral tenure transfer.
(Both parties already carry foreign shareholder registration approvals; key documentation that lets each hold equity in the new “Rincon” entity.)
The Rincon project already stands as one of Power’s most advanced Argentinian lithium assets, with a JORC 2012 Mineral Resource of 292K tonnes of lithium carbonate equivalent and a preliminary economic assessment. It’s adjacent to established lithium projects helmed by Rio Tinto (ASX:RIO) and Argosy (ASX:AGY).
PNN opened Thursday trade up +2.2% on the Rincon news.
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