Power Minerals and Navigate Energy Finalise Rincon JV Incorporation, Unlock US$4M Funding

A Milestone for the Rincon Lithium Project

Power Minerals Limited (ASX – PNN) and its partner Navigate Energy Technology Limited have reached a critical juncture in their joint venture to develop the Rincon Lithium Project in Argentina’s prolific lithium triangle. The two parties have finalised the necessary documentation to incorporate the Rincon JV project company under Argentinian law, a move that will enable the release of Navigate Energy’s committed US$4 million investment to fund early-stage development activities.

This incorporation is more than a bureaucratic formality; it represents the formal establishment of the joint venture entity that will hold the mineral tenure and oversee project operations. With foreign shareholder registration approvals secured, Power and Navigate Energy are positioned to jointly advance the project through a structured and compliant corporate framework.

Strategic Asset Transfers and Infrastructure Synergies

Following incorporation, Power’s Argentinian subsidiary will transfer the Rincon Lithium Project tenure to the JV company, consolidating ownership and operational control. Additionally, the Pocitos Project, which provides essential freshwater resources and access to key infrastructure such as rail networks and power, will also be transferred into the JV. This integration is expected to deliver operational efficiencies and economies of scale, critical for lithium brine processing.

The Pocitos Project’s freshwater source is particularly significant, as water availability is a vital component in lithium extraction processes. Its proximity to the Rincon Project and existing infrastructure enhances the overall viability and attractiveness of the joint venture’s development plans.

Pilot Plant and Technology Development

With the initial tranche of investment funds expected to flow into the JV’s bank account shortly after incorporation, Power and Navigate Energy will accelerate the construction and commissioning of a lithium brine pilot plant. This facility will be instrumental in testing brine quality and tailoring Direct Lithium Extraction (DLE) technology to optimise lithium recovery. The pilot plant’s success will be a key indicator of the project’s technical and commercial potential.

Economic Potential Backed by Robust Assessment

The Rincon Project boasts a substantial JORC 2012 Mineral Resource of 292,564 tonnes of lithium carbonate equivalent (LCE). A Preliminary Economic Assessment completed to scoping study standard in 2023 highlighted the project’s strong financial metrics, including a pre-tax net present value of approximately US$502 million, a payback period of three years, and an internal rate of return of 42%. Forecast annual production is estimated at 7,061 tonnes of high-purity lithium carbonate, underpinning annual revenues near US$195 million over an initial 14-year mine life.

These figures underscore the project’s potential to become a significant player in the global lithium market, particularly given its strategic location adjacent to established lithium operations by Rio Tinto and Argosy Minerals.

Looking Ahead

As the Rincon JV entity moves towards formal incorporation and asset consolidation, the release of committed funding and pilot plant development will mark the transition from planning to execution. Power Minerals’ Managing Director Mena Habib emphasised that these steps confirm the strong partnership with Navigate Energy and are pivotal in realising shareholder value from the project.

Investors and industry watchers will be keenly observing the pilot plant results and subsequent project milestones, which will provide clearer insights into the commercial viability and scalability of this lithium brine venture.