Power Minerals (ASX: PNN), an Australian exploration and development company, has executed a term sheet for an exclusive option to acquire the Tântalo Project in Paraiba state, Brazil.
The project lies immediately south of Power's existing Nióbio niobium, rare earth elements, and lithium project.
The acquisition comprises 12 granted permits covering approximately 57.80km2, reinforcing Power's foothold in an emerging niobium exploration precinct.
The permits include Garimpo licence titles, potentially enabling a quicker approval pathway for on-ground exploration and drilling planned for the current calendar year.
"This is a key transaction in Power's strategy to establish a significant footprint in an established exploration precinct in Brazil. Completing the acquisition of the Tântalo Project would materially expand our ground position in the region, which also hosts our Nióbio Project," said Mena Habib, Managing Director of Power Minerals.
Power will undertake a 60-day due diligence period, following a non-refundable upfront payment of $50,000 to the vendor, Cooperativo dos Trabalhadores de Minerio e Agricultura de Equador e Serido.
Further payments are structured over a three-year timeframe, along with milestone and royalty agreements.
Artisanal mining activities are currently active within the Tântalo Project area.
Power Minerals is an exploration and development company engaged in the development of its lithium assets in Argentina into lithium producing operations, the exploration of the Lltio Niobium Project in Brazil and delivering value from its non-core Australian assets.
At the time of reporting, Power Minerals' share price was $0.091.