Power Minerals attracts $2.6m strategic investment from Fuyang Mingjin

Power Minerals (ASX: PNN) has attracted the attention of industry investor Fuyang Mingjin New Energy Development, which will scoop up $2.6 million shares to secure a strategic holding.

Under an agreed placement, Fuyang will subscribe for 6.5 million Power shares at $0.40 each – giving it an 8.9% interest.

Fuyang’s strategic $2.6 million investment will give Power funds to accelerate development of its Salta lithium brine project in the Argentina’s northwest, which is part of the world-renowned ‘lithium triangle’.

Power managing director Mena Habib said the company was “delighted” to attract Fuyang as a strategic cornerstone investor.

“ shares a common goal with Power to drive the development of the Salta lithium project to produce a quality product for the massive global electric vehicle battery market, and deliver significant value for shareholders.”

“We envisage Fuyang’s investment as being the starting point of a long and mutually beneficial relationship between ,” Mr Habib added.

Fuyang has existing cornerstone equity investments in other ASX listed companies Octava Minerals (ASX: OCT) and Patagonia Lithium (ASX: PL3).

Salta lithium project

Resource definition drilling kicked-off last week at the Rincon salar within the Salta project.

The program is designed to underpin an upgrade to the project’s global resource estimate, which currently totals 239,000 tonnes of contained lithium carbonate equivalent grading 313 milligrams per litre of lithium.

Drilling at Rincon will comprise three holes for 500m and test for potentially deeper resources at the northern part of the licence.

Rincon is the most advanced salar within the Salta project and hosts the highest-grade lithium and an existing resource.

Mr Habib said the results from this latest drilling program at Rincon will feed into a preliminary economic assessment, which is due for completion at the end of next month.

More recently, drilling was completed at the Incahuasi salar within the project, and a maiden resource is currently being calculated based on the results.

Once drilling winds up at Rincon, the rig will move to the Pocitos salar, which is the final target of the current campaign.