Power Minerals secures $5M strategic investment
Key points
- Power Minerals agreed to an at-market placement worth $5 million.
- The deal grants the investing group a targeted 8% stake in the company.
- Proceeds will fund drilling activities at the Morro do Ferro rare earths project in Brazil.
Power Minerals (ASX:PNN) agreed to an at-market equity placement of $5 million at $0.14 per share with European Lithium (ASX:EUR), a subsidiary of Critical Metals (NASDAQ:CRML).
The placement provides fresh capital to expand exploration following recent high-grade rare earths discoveries at the company's Brazilian asset.
The transaction will establish the investing group as a cornerstone eight per cent shareholder in Power Minerals.
Power Minerals Managing Director Mena Habib said, “This investment by Critical Metals Corp provides important funding as we accelerate exploration at Morro do Ferro, and our positive relationship with Critical Metals Corp also enhances our ability to access international funding and development opportunities to further grow Power Minerals’ value proposition.”
Capital from the placement will directly fund an expanded drilling campaign and resource definition work at the Morro do Ferro project.
Following the announcement, the Power Minerals share price was unchanged at $0.16.
The strategic partner maintains a market capitalisation exceeding $1 billion alongside a cash balance of $500 million.
Power Minerals continues to advance its critical minerals portfolio, including South American rare earths and lithium assets.
