Power Minerals has signed a non-binding Term Sheet with Summit Explore to jointly develop the Salta Lithium Project in Argentina, aiming to deploy cutting-edge direct lithium extraction technology across multiple salars.
- Non-binding Term Sheet signed for Salta Lithium Project joint venture
- Summit Explore to fund up to US$6 million for exploration and development
- Option for Summit Explore to acquire 59% interest by building a 5,000t DLE plant
- Summit’s patented denaLi™ technology promises over 95% lithium recovery
- Option to acquire entire project for US$50 million during Preliminary Feasibility Study
Strategic Alliance in Argentina's Lithium Triangle
Power Minerals Limited (ASX:PNN) has taken a significant step forward in the development of its Salta Lithium Project by executing a non-binding Term Sheet with Summit Explore Corporation, a subsidiary of Canadian lithium technology leader Summit Nanotech. This agreement sets the stage for a potential joint venture to harness multiple lithium brine salars within Argentina’s prolific lithium triangle, including Incahausi, Rincon, Pocitos, Pular, and Arizaro.
The collaboration aims to leverage Summit’s proprietary denaLi™ direct lithium extraction (DLE) technology, which boasts lithium recovery rates exceeding 95% and impurity reductions above 98%. This technology represents a promising alternative to traditional evaporation methods, potentially accelerating production timelines and improving environmental outcomes.
Terms and Development Framework
Under the Term Sheet, Summit Explore plans to invest up to US$6 million to complete exploration activities, including drilling water and pumping wells, to support a Preliminary Feasibility Study (PFS) compliant with international standards. Upon successful delivery of the PFS, Summit Explore may elect to fund and construct a commercial-scale 5,000-tonne DLE plant, acquiring a 59% interest in the joint venture, with Power Minerals retaining 41%.
Alternatively, Summit Explore holds an option to acquire the entire Salta Project outright for US$50 million during the PFS period. This flexibility provides both parties with multiple pathways to monetise and develop the lithium assets depending on market conditions and project viability.
Expanding the Lithium Footprint
Summit Explore is also in talks to acquire up to three additional lithium brine projects in the region, which would be incorporated into the joint venture at no cost to Power Minerals, further expanding the resource base and potential scale of operations. This land-and-expand strategy underscores Summit’s ambition to become a major lithium producer in South America’s lithium triangle.
Both companies have committed to a 90-day period to finalise a binding Definitive Agreement, with a Technical Committee to oversee the PFS and project development. The partnership reflects a shared vision to unlock the value of Argentina’s lithium resources through innovative technology and strategic investment.
Leadership Perspectives
Power Minerals’ Managing Director Mena Habib emphasised the significance of the alliance, highlighting the combination of Summit’s advanced DLE technology and the comprehensive portfolio of lithium brine assets. Chairman Stephen Ross echoed this optimism, pointing to the longstanding relationship with Summit and the commitment to sustainable development that benefits shareholders and the broader lithium market.
Summit Nanotech CEO Amanda Hall described the project as the world’s first multi-salar lithium operation, leveraging AI-driven process controls and proprietary sorbents to optimise lithium extraction. The collaboration marks a pivotal moment in the evolution of lithium production in one of the world’s most important battery metals regions.
Bottom Line?
As Power Minerals and Summit Explore move toward a definitive agreement, the lithium market will be watching closely to see if this pioneering multi-salar project can deliver on its transformative promise.
Questions in the middle?
- Will the Definitive Agreement be finalised within the 90-day timeframe?
- How will Summit’s denaLi™ technology perform at commercial scale across multiple salars?
- What impact will additional project acquisitions have on the joint venture’s valuation and production timeline?