Power Minerals Limited (ASX: PNN) has extended its Memorandum of Understanding (MoU) with Xiamen Xiangyu New Energy Co., Ltd.
Power and Xiamen Xiangyu entered into the MoU in July 2022 allowing both parties to conduct due diligence with a view to executing binding off-take, funding, logistics and offtake agreements for Power’s Salta Lithium Project, in the Salta province in the lithium triangle of north-west Argentina.
The initial timeframe set-down under the MoU for the parties to execute a binding agreement was 180 days from date of execution of the MoU.
Power has confirmed that the due diligence has progressed extremely well with both parties working collaboratively throughout the process.
Xiamen Xiangyu recently completed a successful 40 litre bulk-sample test of brines from each of the Incahuasi, Rincon and Pocitos salares at the Salta Project, which confirmed the brine quality and suitability from each salar.
Xiamen Xiangyu will now conduct a site visit to the Salta Project as a next step in the due diligence process. The final component of due diligence is the successful delivery of the Preliminary Economic Assessment (PEA) currently underway at the Rincon salar.
The PEA is expected to be completed in the first half of calendar 2023, and Power and Xiamen Xiangyu have agreed to extend the MoU until the completion of the PEA. Subject to the successful completion and outcomes of the PEA, the parties then plan to move to execute a binding agreement in respect of funding, logistics and offtake for the Salta Project.
“We have been delighted with the progress of our MoU with Xiamen Xiangyu and the working relationship we have developed with them. The successful completion of the Rincon PEA will be the final step in the due diligence process, and both parties are pleased to extend the MoU to allow for its completion.,” Power Minerals Managing Director, Mena Habib, said.
Xiamen Xiangyu is part of Xiamen Xiangyu Co., Ltd, a diversified fortune-500, Shanghai Stock Exchange- listed (SSE: 600057) supply chain and logistics company. Xiamen Xiangyu provides an end-to-end supply chain for battery technology metals, sourcing supply of lithium, nickel, cobalt and other raw materials for processing plants and battery manufacturers and end-use by automobile manufacturers and other battery technology industries.
The Salta Project is strategically located in the Salta province in north-west Argentina and is part of the Lithium Triangle, the world’s leading lithium-brine region. The Project consists of five salares (salt lakes) that sit within seven mining leases, over a total project area of 147.07km2. The Project’s Incahuasi salar is located immediately adjacent to Ganfeng Lithium Co. Ltd’s project and the Rincon salar is adjacent to Rio Tinto Ltd’s project in the region, which was recently acquired from Rincon Mining Ltd for USD$825M. Power is focused on the accelerated exploration and development of the Project, to drive shareholder value.
For further information please visit: https://www.powerminerals.com.au/