Power Minerals Limited has taken a significant step in expanding its South American critical minerals portfolio by signing a binding option to acquire the high-grade Santa Anna Niobium Project in Brazil, supported by a strategic US$300,000 investment and a $1.3 million placement to fund exploration.
- Binding Letter of Intent signed for Santa Anna Niobium Project acquisition in Brazil
- High-grade niobium drilling results up to 3.36% Nb2O5 with rare earth element potential
- US$300,000 strategic investment received to fund option fee and initial exploration
- Completed diamond drilling at Nióbio Project with results pending
- $1.3 million placement secured to advance exploration and corporate activities
Strategic Acquisition of Santa Anna Niobium Project
Power Minerals Limited (ASX: PNN) has announced a binding Letter of Intent to acquire an option over the Santa Anna Niobium Project located in Goiás State, central Brazil. This high-grade, drill-ready carbonatite-hosted niobium asset represents a rare and valuable addition to Power’s portfolio of critical minerals projects in South America. The project boasts an extensive drilling database of 192 holes totaling over 5,300 metres, with notable niobium grades reaching as high as 3.36% Nb2O5.
The Santa Anna Project’s geological setting within the Goiás Alkaline Province offers significant exploration upside, with large portions of the intrusion yet to be drill tested. Importantly, Power’s due diligence has identified promising rare earth element (REE) mineralisation within the weathered clay saprolite zone, with total rare earth oxides (TREO) concentrations up to 3.55%. This dual potential for niobium and REE recovery could enhance the project’s economic viability.
Funding and Exploration Plans
To support the option acquisition and initial exploration activities, Power secured a US$300,000 (A$473,500) strategic investment from Golden Worldwide Holdings Limited, an institutional investor focused on South American critical minerals. The funds have been received and will finance an initial drilling campaign of at least 1,000 metres of reverse circulation drilling aimed at defining an Exploration Target under the 2012 JORC Code.
Following successful initial results, Power intends to exercise the option and advance to delineating a maiden JORC Mineral Resource Estimate. The company has also secured firm commitments for a $1.3 million placement, which will primarily fund ongoing exploration at Santa Anna alongside corporate and working capital needs. This capital raise underscores investor confidence in Power’s strategic direction and project pipeline.
Progress at Nióbio and Lithium Projects
Power completed a first-pass diamond drilling program at its Nióbio Project in Rio Grande do Norte, Brazil, intersecting pegmatites in all 10 holes drilled, some exceeding 30 metres in thickness. Laboratory assay results are pending and expected in the current quarter, which will clarify the project's potential for niobium, tantalum, and REEs.
In Argentina, Power expanded its Rincon Lithium Joint Venture by incorporating the strategically located Pocitos Lithium Project. Revised terms were agreed to settle a convertible loan agreement with Legendary Star Investment Asia, streamlining the JV’s capital structure. However, a previously planned funding and development agreement for the Pular Lithium Project was terminated due to commercial disagreements over lithium concentrate purchase terms.
Corporate and Financial Position
Power’s cash position stood at $331,000 at the end of March 2025, supplemented by the recent strategic investment and placement commitments. The company also renegotiated the divestment of its Santa Ines Gold Project, expecting imminent receipt of revised sale proceeds. Meanwhile, delayed payments from Ultra Lithium under a convertible loan agreement remain a point of attention, though Power has refrained from enforcement actions to facilitate settlement.
Overall, Power Minerals is actively advancing its South American critical minerals assets with a clear focus on niobium and lithium, supported by strategic capital injections and targeted exploration programs. The Santa Anna acquisition, in particular, positions the company to capitalize on growing demand for clean energy metals.
Bottom Line?
Power Minerals’ acquisition and funding moves set the stage for a pivotal exploration phase that could redefine its critical minerals footprint in South America.
Questions in the middle?
- Will initial drilling at Santa Anna confirm a JORC-compliant resource and justify exercising the acquisition option?
- How will the rare earth element potential at Santa Anna influence project economics and processing strategies?
- What timeline and results can investors expect from assays at the Nióbio Project and the expanded Rincon Lithium JV?