Power Minerals (ASX:PNN) has executed a non-binding term sheet with Summit Explore, a subsidiary of the sustainable direct lithium extraction leader, Summit Nanotech.
The agreement establishes a framework for the development of five key lithium brine salars—Incahuasi, Rincon, Pocitos, Pular, and Arizaro—collectively known as the Salta Lithium Project in Argentina.
The collaboration aims to transition these assets toward commercial-scale production through a formal joint venture or a high-value divestment.
Under the proposed definitive agreement, Summit Explore has the option to acquire a 59% joint venture interest by funding and constructing a 5,000-tonne commercial DLE plant.
Initial commitments include a US$6 million investment to complete essential exploration, such as drilling water and pumping wells.
Furthermore, Summit will leverage its patented denaLi DLE technology, which boasts a remarkable 95% lithium recovery rate and 98% impurity reduction.
To support the pre-feasibility study, detailed engineering and brine compatibility analyses will be conducted at Summit's Alpaca DLE demonstration facility in Chile.
The agreement also provides Summit with a US$50 million purchase option for the Salta Project, exercisable during the PFS period.
Discussions are underway for Summit to acquire three more regional projects, with Power Minerals slated to retain a 41% stake in any subsequent additions.
At the time of reporting, Power Minerals’ share price was $0.10.