Rincon JV Termination Raises Questions on Power Minerals’ Funding Path
Power Minerals has terminated its joint venture with Navigate Energy on the Rincon Lithium Project, opting to retain full ownership and seek new partners amid a buoyant lithium market.
- Termination of Rincon Lithium JV with Navigate Energy
- Power Minerals retains 100% ownership of Rincon Project
- Plans underway for evaporation pond engineering study
- Discussions initiated with new funding and development partners
- Rincon Project hosts significant 292,564 tonnes LCE JORC resource
Strategic Shift in Lithium Development
Power Minerals Limited (ASX – PNN) has announced a decisive change in strategy for its flagship Rincon Lithium Project in Argentina’s Salta province. The company has mutually agreed with joint venture partner Navigate Energy Technology Limited to terminate their Rincon JV, allowing Power Minerals to regain full ownership of the project. This move reflects Power’s confidence in the current lithium market and the project’s strategic advantages.
Under the previous arrangement, Navigate Energy was to earn a 59% stake by investing US$4 million. However, with lithium prices surging and demand outlooks strengthening, Power Minerals reassessed the joint venture’s value proposition and concluded that sole ownership combined with new funding avenues would better maximise shareholder returns.
Unlocking Project Potential
The Rincon Project is the most advanced asset within Power’s broader Salta Lithium portfolio, boasting a substantial JORC 2012 Mineral Resource of 292,564 tonnes of lithium carbonate equivalent (LCE). It sits adjacent to lithium operations by industry heavyweights Rio Tinto and Argosy Minerals, positioning it well within a proven lithium-producing region.
Power Minerals plans to initiate an engineering study focused on installing evaporation ponds, a critical infrastructure component that enhances lithium extraction efficiency from brine. Additionally, the company intends to leverage its nearby Pocitos Project to establish a production hub, utilising its freshwater resources to support Direct Lithium Extraction (DLE) technology; a cutting-edge method aimed at optimising lithium recovery.
Next Steps and Market Outlook
With the Rincon JV termination expected by the end of February 2026, contingent on repayment of US$1 million funding facilitated by Navigate Energy, Power Minerals is actively engaging with potential new partners. The goal is to secure funding arrangements that allow the company to maintain majority control while accelerating development.
Operationally, Power aims to fast-track the project towards a pilot plant stage, which will test lithium brine characteristics and refine DLE technology applications. This pilot plant is a crucial step toward commercial-scale production, aligning with the company’s commitment to capitalise on the robust lithium market conditions.
Managing Director Mena Habib emphasised the company’s dedication to maximising value from Rincon, highlighting the importance of revisiting partnership terms in light of market dynamics. The termination of the JV was described as a mutual decision, with thanks extended to Navigate Energy for their support during the joint venture period.
As the lithium sector continues to attract global attention amid the electric vehicle and renewable energy boom, Power Minerals’ strategic pivot underscores the competitive pressures and opportunities within Argentina’s lithium triangle.
Bottom Line?
Power Minerals’ move to sole ownership and new partnerships signals a bold push to capitalise on lithium’s rising tide.
Questions in the middle?
- Who are the potential new funding and development partners Power Minerals is courting?
- What is the timeline for the pilot plant development and commercial production?
- How will the termination of the JV impact short-term financing and project milestones?
