Power Minerals Finalises Morro do Ferro REE Acquisition and Signs Lithium JV Term Sheet

Morro do Ferro Acquisition Completes with Stellar Rare Earth Grades

Power Minerals has officially closed the deal to acquire the Morro do Ferro (MDF) Rare Earth Elements project in Brazil’s Minas Gerais state, marking a significant milestone for the company. The asset is notable for its exceptional grades, with diamond drillholes returning weighted averages exceeding 5% total rare earth oxides (TREO) over substantial intervals. For example, drillhole MFSR-35 reported 60.85 metres at 8.92% TREO from surface to end of hole, underscoring the project's high-grade nature.

Beyond TREO, the project boasts impressive concentrations of magnetic rare earth oxides (MREO); including neodymium, praseodymium, dysprosium, and terbium; which reached up to 3.53% of whole rock in some samples. These elements are critical for permanent magnet production and represent over 80% of the total REE market value, potentially positioning Morro do Ferro as a premium source within the rare earths sector. This unique geochemical profile is set to shape Power’s development strategy for the project.

The acquisition followed thorough due diligence and was executed with Mineração Terras Raras, the project’s previous owner. Morro do Ferro benefits from a 'Manifesto' mining title, granting direct land ownership and streamlined exploration approvals, a rarity that should accelerate Power’s planned drilling and resource definition programs. The project sits in the prolific Poços de Caldas alkaline complex, a globally recognised rare earth precinct, adjacent to significant assets held by Meteoric Resources and Viridis Mining & Minerals.

These developments build on Power’s earlier announcements, including the verification of world-class rare earth grades that confirmed historical data integrity and laid the groundwork for upcoming resource estimation and metallurgical studies.

Santa Anna Project Drilling Validates High-Grade Niobium and REE Potential

In parallel, Power Minerals reported strong final results from its shallow auger drilling at the Santa Anna REE-Niobium project in Goiás state, Brazil. The drilling revealed continuous mineralisation from surface to end of hole, with highlights including 9.5 metres at nearly 5,000 ppm TREO and 8 metres at 3,373 ppm Nb2O5. Notably, some intervals contained up to 2.14% TREO and 0.83% Nb2O5, reinforcing the project's economic potential.

The company has engaged SRK Consulting to prepare a maiden Mineral Resource Estimate (MRE) based on historical and recent drilling data, expected this quarter. Meanwhile, a major reverse circulation drilling campaign of up to 10,000 metres is underway to test deeper zones and expand the resource footprint. These efforts are designed to build a robust resource base for the project’s future development.

Salta Lithium Project Advances with Summit Nanotech JV Term Sheet

Power Minerals made a strategic move in Argentina by executing a non-binding Term Sheet with Summit Explore Corporation, a subsidiary of Canadian direct lithium extraction (DLE) leader Summit Nanotech. The agreement targets the development of a multi-salar lithium project in the Salta Province’s lithium triangle, including five key brine assets: Incahuasi, Arizaro, Rincon, Pocitos, and Pular.

The proposed joint venture would see Summit acquire a 59% interest, with Power retaining 41%. Summit will fund up to US$6 million for water drilling, resource definition, and a Preliminary Feasibility Study (PFS) under NI 43-101 standards. The PFS will leverage Summit’s patented denaLi™ DLE technology, aiming to establish a commercial-scale lithium operation. Summit also holds an option to acquire Power’s Salta Project outright for US$50 million during the PFS period.

Power’s ongoing mineral resource expansion program at Rincon, including geophysical surveys using Tromino® BLU seismometers, aims to refine resource estimates and support future production modelling. This technical groundwork is critical to underpinning the JV’s development plans.

Santa Inés Copper-Gold Project Relaunches After Regaining Control

In Argentina’s Salta Province, Power Minerals has regained 100% ownership of the Santa Inés Copper-Gold Project, enabling the company to relaunch exploration activities. Situated along the major Archibarca structural corridor, the project is geologically prospective and near significant regional mines such as Fortuna Mining's Lindero Gold Mine and BHP’s Escondida copper-gold mine.

Field observations have identified significant copper oxide mineralisation, and Power plans to integrate surface results with a new deep-exploration targeting strategy to unlock latent value amid rising global copper and gold prices.

Corporate Moves: $10.25 Million Raise and Leadership Appointment

Power Minerals secured firm commitments for a $10.25 million equity placement at $0.105 per share, strongly supported by US institutional investors and cornerstone participants including S3 Consortium Holdings. The raise will fund the Morro do Ferro acquisition costs, repay a US$1.1 million facility related to the Rincon project, and advance exploration across Power’s portfolio.

In a leadership upgrade, the company appointed Alistair Stephens as CEO. Stephens brings over 35 years of experience in rare earths and resource development, having led Arafura Rare Earths and Lindian Resources through significant growth phases. His expertise is expected to accelerate Power’s rare earth projects’ advancement in South America.

Power’s cash position stood at $6.98 million at the end of March 2026, providing a solid runway for upcoming exploration and development activities.

The company’s immediate focus will be on advancing the Morro do Ferro drilling campaign, while progressing the Summit Nanotech joint venture and delivering the Santa Anna Mineral Resource Estimate. How swiftly these initiatives translate into tangible resource upgrades and commercial milestones will be critical to watch in the coming quarters.

Meanwhile, Power’s positioning in Brazil’s Poços de Caldas complex alongside established players like Meteoric Resources and Viridis Mining & Minerals creates a competitive dynamic that could influence regional rare earth supply chains. The interplay between these projects and Power’s unique high MREO grades may prove pivotal in defining the company’s market standing.

As Power navigates these developments, the unfolding lithium joint venture in Argentina adds a layer of strategic diversification, potentially linking rare earth and lithium supply in a single portfolio; a rare combination in the critical minerals space.

Investors will be keen to see how Power balances its capital allocation between these geographically and technically distinct projects while managing exploration risk and market expectations.