Power Minerals’ Rincon lithium joint venture moves forward with US$4M investment set for release

Power Minerals continues to position itself as a key emerging player in South American lithium, with the Rincon JV expected to play a central role in the company’s strategy to establish low-cost, scalable lithium production across the region.

Power Minerals Limited (ASX:PNN) has taken a major step forward in the development of its Rincon Lithium Project in Argentina after securing critical regulatory approval to incorporate its Joint Venture (JV) company with Navigate Energy Technology Limited.

The milestone follows Navigate Energy’s successful registration as a foreign shareholder, enabling it to hold equity in the soon-to-be-established JV entity overseeing the Rincon Lithium Project. This development triggers the release of a US$4 million investment to fund project development, including a lithium brine pilot plant.

According to Power Minerals, incorporation documents will be lodged with the relevant Argentine authorities this quarter. Upon incorporation, the JV will open a local bank account to receive the initial US$1 million capital injection from Navigate Energy.

Power and Navigate will use the funds to construct and operate a pilot plant for lithium brine testing and initiate broader development activities at the Rincon site. Investment funds will be progressively released in alignment with project milestones and agreed expenditure.

“Formalising the incorporation of the Rincon JV company and the transfer of the lithium brine mineral tenure paves the way for the flow of US$4 million of investment funds... This milestone is a significant step towards realising shareholder value from the project,” said Mena Habib, Managing Director of Power Minerals.

The Rincon Lithium Project forms part of Power’s broader Salta Lithium Project in Argentina’s resource-rich Lithium Triangle. Rincon is currently the most advanced asset in the portfolio and is located just 30km from the planned Pocitos production hub, which offers key synergies and potential economies of scale for lithium processing and transport.

As per a Binding Memorandum of Understanding signed in February 2025, Power also plans to transfer its Pocitos Lithium Project into the Rincon JV entity following incorporation.

Power Minerals continues to position itself as a key emerging player in South American lithium, with the Rincon JV expected to play a central role in the company’s strategy to establish low-cost, scalable lithium production across the region.