Power Minerals completes technical due diligence for proposed new lithium asset acquisitions
Diversified minerals company Power Minerals (ASX: PNN) has completed a key condition related to its planned acquisition of the Argentinian lithium assets of Ultra Lithium Inc. (TSXV: ULT).
In its bid for the Ultra Lithium-owned over 250,000-hectare Laguna Verde lithium-brine projects in the Catamarca Province, Power Minerals stipulated that the mid-May deal was subject to the successful completion of a 21-day due diligence period.
The Australian company has now confirmed it has successfully completed its technical due diligence process.
Power Minerals said the final milestone for official finalisation of the deal is underway with both parties looking to complete outstanding requirements, including confirmation that all of Ultra’s tenements subject included in the deal are in good standing.
Wrapping up the deal
The respective companies have entered into a final acquisition agreement.
Power Minerals is acquiring the new assets via the distribution of ordinary shares and performance rights to Ultra Lithium in two tranches.
Firstly a tranche of 25 million ordinary shares are to be issued upon completion and then a tranche of 25 million performance shares are to be issued upon completion.
The second part of the agreement will become exercisable into one ordinary share in Power Minerals subject to the definition of a JORC mineral resource of two million tonnes at greater than or equal to 350ppm lithium carbonate equivalent at the Laguna Verde properties.
Perfect strategic fit
Power Minerals views the Laguna Verde projects as good fit with its plans to become a leading lithium brine developer in Argentina.
At the same time, Power will also focus on developing its Salta lithium project with its direct lithium extraction partners.
The Laguna Verde brine lithium property comprises 7,569 hectares of land over three mining licenses in Catamarca Province.
Once the deal is finalised, Power will become one of the largest landholders in the famous lithium triangle of Argentina, with its portfolio of lithium development assets growing to an impressive 2,837.70 sq km.
Strong financial support
In early May, Power revealed it had attracted a strategic investment of $2.6 million from lithium sector investor, Fuyang Mingjin New Energy Development Co.
China-headquartered Mingjin is also an existing cornerstone equity investments in fellow ASX-listed companies, Octava Minerals (ASX: OCT) and Patagonia Lithium (ASX: PL3).