Power Minerals Targets Heavy Rare Earths Near US Giant with $4.1M Raise
Power Minerals Limited has secured an option to acquire the Gamma Heavy Rare Earths Project in California, adjacent to the Mountain Pass Mine, backed by a $4.1 million placement to accelerate exploration.
- Option agreement to acquire Gamma HREE Project near Mountain Pass Mine
- Historical data shows high-grade heavy rare earth and uranium mineralisation
- $4.1 million placement led by Tribeca Investment Partners and S3 Consortium
- Project complements Power Minerals’ existing critical minerals portfolio
- Exploration plans include systematic sampling, geophysics, and drilling
Strategic Acquisition in a Mining-Friendly US District
Power Minerals Limited (ASX, PNN) has taken a significant step into the US rare earths market by executing an option agreement to acquire the Gamma Heavy Rare Earths (HREE) Project. Located in San Bernardino County, California, the project lies in close proximity to the Mountain Pass Mine, the only rare earth producing operation in the United States, owned by MP Materials Inc.
This acquisition positions Power Minerals within a highly prospective rare earth precinct, known for its mining-supportive environment and established infrastructure. The Gamma Project’s location along sealed highways and on Bureau of Land Management land suggests streamlined access and permitting prospects, a notable advantage in US mining jurisdictions.
High-Grade Heavy Rare Earths and Uranium Potential
Historical exploration data, while non-JORC compliant and requiring modern validation, reveals compelling grades of rare earth oxides, particularly heavy rare earth oxides (HREO), with rock chip samples showing up to 2.03% total rare earth oxides (TREO) and over 1% HREO. This contrasts with the Mountain Pass Mine’s focus on light rare earth elements, suggesting Gamma could provide complementary feedstock, especially for heavy rare earths which are critical for advanced technologies.
Additionally, the project exhibits significant uranium mineralisation potential, with historic drill intersections including 6.25 metres at 1.3% uranium oxide. The presence of distinct uranium zones alongside rare earth zones mirrors the geological setting of Mountain Pass, adding further strategic value.
Capital Raise to Accelerate Exploration and Development
To fund the acquisition and upcoming exploration activities, Power Minerals has completed a $4.1 million placement at $0.10 per share, attracting sophisticated investors such as Tribeca Investment Partners and the S3 Consortium. The funds will support systematic surface sampling, geophysical surveys, aerial drone magnetics, and initial drilling campaigns aimed at confirming and expanding the historical mineralisation.
The placement includes options exercisable at $0.10, extending to late 2029, aligning investor incentives with the company’s medium-term growth objectives. Joint Lead Managers Oakley Capital Partners and GBA Capital are facilitating the raise, underscoring institutional interest in the project.
Complementing a Growing Critical Minerals Portfolio
Power Minerals’ Managing Director, Mena Habib, highlighted the strategic fit of Gamma within the company’s portfolio, which already includes the Santa Anna carbonatite project in Brazil. The acquisition not only diversifies Power’s asset base geographically but also enhances its exposure to heavy rare earths and uranium, both critical to emerging clean energy and technology markets.
With the US government prioritising domestic critical minerals supply chains, Gamma’s location and mineral profile could position Power Minerals as a key player in supporting this strategic imperative.
Next Steps and Market Implications
Power Minerals is advancing due diligence and expects to complete the acquisition subject to shareholder and regulatory approvals. Exploration teams are already on site conducting mapping and sampling, with plans to rapidly progress to drilling based on initial results.
While historical data provides a promising foundation, the company acknowledges the need for modern assays and verification under JORC standards to underpin resource estimation and development planning.
Bottom Line?
Gamma’s acquisition marks a pivotal expansion for Power Minerals, with upcoming exploration results set to define its role in the US critical minerals landscape.
Questions in the middle?
- How will Power Minerals validate and upgrade the historical non-JORC data to JORC-compliant resources?
- What timeline and budget are projected for drilling and resource definition at Gamma?
- Could Gamma’s heavy rare earths complement or compete with Mountain Pass Mine’s production?