Power Minerals Expands Portfolio with Acquisition of Gamma REE Project in California
Power Minerals (ASX: PNN) has announced that it is acquiring the Gamma heavy rare earth elements (REE) project in the San Bernardino district of California for approximately $950,000 plus shares.
Gamma, which sits 195 kilometres southwest of the world-class Mountain Pass REE mine, has only recently come under examination for its rare earths potential after initial exploration for gold and then uranium—a similar history to its neighbour.
While there has been no drilling in the Gamma area for almost 50 years, a recent assessment of 12 samples showed 10 containing more than 50% total rare earth oxide (TREO), which is in strong contrast to the predominantly light REE content at Mountain Pass.
Uranium Potential Identified
Two historic surface rock grab samples Crismar Mining collected in January 1968 measured exceptional average returns of 0.4% triuranium octoxide.
Big Horn Mining Company collected a further 20 channel and rock chip samples over the same sites as Crismar, as well as other parts of the target area.
One channel sample over 15.2m length returned 0.36% uranium dioxide, while the remaining sampling shows considerable uranium over a large area.
Power considers this historical geological data to be of sufficient quality to support an exploration targeting program, although it does not satisfy the requirements of the 2012 JORC Code.
Strategic Critical Minerals
Managing director Mena Habib said Gamma would add to Power’s growing strategic critical minerals portfolio, with its potential for mineralised carbonatite synergising with the company’s Santa Anna project in Brazil.
“Gamma represents a high-grade, early-stage exploration asset that we see has the potential to be rapidly advanced with the application of targeted, modern exploration activities.”
Mr Habib said that Power sees a potential opportunity to provide heavy REE feedstock from Gamma, and the company’s exploration team is now onsite conducting mapping and early-stage sampling.
The company plans to undertake systematic sampling and geophysical surveys in the lead-up to its maiden drilling activities at the project.
$4.1m Capital Raising
To help fund the proposed acquisition of Gamma, Power has received firm commitments for a placement to raise a total of $4.1 million.
Tribeca Investment Partners and S3 Consortium (Stocks Digital) will participate in the placement, which will see Power issue 41 million new shares at $0.10 each in two tranches.
Power intends to apply the balance of proceeds toward work on the Gamma project and its other existing projects, along with general working capital.
The company will also issue just over 50 million new shares to the vendors as part of the consideration for Gamma.