Power Minerals Ltd. has secured a AU$5 million cornerstone investment from Critical Metals Corp. to fund expanded drilling at its Morro do Ferro rare earths project in Brazil.
The investment will be executed via an at-market placement through CRML’s Australian subsidiary, European Lithium Ltd.
Under the subscription agreement, CRML will acquire approximately 35.7 million fully paid ordinary shares in Power Minerals at 14 cents per share, establishing an approximate 8 per cent cornerstone holding in the ASX-listed company.
Subscribing investors will also receive one free-attaching unlisted option for every two shares issued, exercisable at 18 cents over a three-year period, subject to shareholder approval.
Proceeds from the placement will directly support a drilling campaign at the high-grade Morro do Ferro discovery, aimed at testing the mineralised system at depth and defining the subsurface geological geometry alongside ongoing passive seismic surveys and metallurgical test work.
Tony Sage, Executive Chairman of European Lithium and Critical Metals, highlighted the geological potential of the Brazilian asset within CRML’s global critical minerals portfolio.
“We see this strategic, cornerstone investment in Power Minerals as a natural fit for our business model,” Sage said.
“Power is on the cusp of unlocking a major rare earths discovery at its Morro do Ferro Project in Brazil, with the project delivering consistently exceptional rare earths grades from surface. This investment will allow Power to continue to drive its plans to realise value from MDF.”
Power Minerals Managing Director Mena Habib welcomed the funding and potential access to international capital markets.
“This investment by Critical Metals Corp provides important funding as we accelerate exploration at Morro do Ferro,” Habib said.
“As a board, we view the strategic investment by Critical Metals Corp at our current stage of exploration as strong validation of the Project’s geological potential and the progress achieved to date.”
