Power Minerals has secured full ownership its Rincon lithium joint venture from partner Navigate Energy Technology Ltd.
Power is implementing a new development strategy for the Rincon lithium project in the Salta province in Argentina. The company recognises the significant upside potential of the project and is pursuing more attractive funding and development pathways for the project.
Given the current lithium market conditions and outlook, Power has determined that the Rincon joint venture did not represent the optimal value proposition for the development of the Rincon project.
The joint venture partners have agreed to terminate the joint venture agreement from the date of repayment of the US$1 million facilitated by Navigate Energy as part of the partnership agreements.
Under the joint venture agreement, Navigate Energy was to earn a 59 per cent interest by investing US$4 million.
Depending on the repayment, the termination date is planned to be no later than February 28.
Mena Habib, Managing Director of Power Minerals, said: “We are committed to maximising value from the Rincon lithium project, the largest and most advanced of our Salta lithium project assets.
“Given the strengthening lithium price over the past six months and a positive lithium market outlook, it was essential for Power Minerals to revisit the Rincon JV terms and partnering and assess the potential to deliver a stronger value proposition for shareholders and Power Minerals.
“We thank Navigate Energy for their valued commitment to supporting the Rincon JV process.
“We now look forward to advancing exploration with a goal to fast-track a pilot plant scale project.”
Looking ahead, Power believes it can achieve a similar path to production as Argosy Minerals’ Rincon lithium.
The company will conduct an engineering study for the installation of evaporation ponds, which support enhanced production.
Power also plans to establish a production hub for the Rincon project at its nearby Pocitos project, given its proximity to existing infrastructure and potential to provide a fresh water source.
Operationally, the next step at the project will be the development of a lithium brine pilot plant for brine testing. A pilot plan would test the project’s lithium brine qualities and help tailor suitable direct lithium extraction technology to maximise output.
Power has commenced initial discussions with potential joint venture partners to maintain control by holding a majority stake in arrangements for future funding and development.
Power plans to secure future funding and development by leveraging the strengthening lithium market and the Rincon project’s strategic location within an operating llithium-producing salar.
