Power Minerals (ASX:PNN) completes acquisition of Morro do Ferro Rare Earths Project in Brazil

Power Minerals has completed the acquisition of the Morro do Ferro Rare Earths Project in Brazil, following execution of a Definitive Agreement with Mineração Terras Raras, with the acquisition completed through the sale of 100% of the issued capital in Mineração Terras Raras.

Highlights

• Acquisition of the Morro do Ferro Rare Earths Project completed via Definitive Agreement
• High concentrations of magnetic rare earth oxides including Nd, Pr, Dy and Tb
• MREO elements account for >80% of the market value for all REE
• Previous drilling returned up to 35,332ppm MREO over 2m in hole MFSR-47
• Intercepts include 60.85m at 89,177ppm TREO and 70.9m at 79,997ppm TREO from surface
• Mineralisation remains open at depth and along strike
• Next steps include RC, diamond and aircore drilling programs

The acquisition follows completion of corporate, financial and technical due diligence, with Power executing the Definitive Agreement with the project vendors.

The Morro do Ferro Rare Earths Project is located in southern Minas Gerais within the Poços de Caldas Alkaline Complex, which hosts several advanced rare earth projects.

Drilling conducted by previous owners returned high-grade total rare earth oxide intercepts across full downhole lengths, including 100.44m at 49,910ppm TREO, 60.85m at 89,177ppm TREO and 70.9m at 79,997ppm TREO from surface to end of hole.

These intercepts include magnetic rare earth oxide concentrations such as 100.44m at 9,485ppm MREO and 60.6m at 13,129ppm MREO.

The announcement states that mineralisation remains open at depth and along strike, with drilling conducted to date by previous owners only partially testing the known extent of the main deposit.

Power Minerals Managing Director Mena Habib said,

“We are delighted to have completed the acquisition of the Morro do Ferro Project, having only entered into an LoI to acquire the Project in the previous month and completing comprehensive due diligence earlier this month. The Project represents a well-validated, high-grade, rare-earth asset in an emerging global rare-earth hub in Brazil and is an ideal complement to our Brazilian project portfolio. An assessment of available exploration data highlights the Project’s strong Mineral Resource potential and excellent expansion upside, subject to further exploration. The Project also has significant topographical advantages that we will seek to exploit in any future development. Leveraging the extensive technical expertise of our management team, we look forward to expediting our initial exploration programs at MDF to realise its full value proposition.”

The Company plans to commence expedited fieldwork programs at the project, including diamond core and RC drilling to augment drilling completed by the previous project owner and further define the main deposit, alongside aircore drilling of selected areas outside the main deposit to identify new priority rare earth targets.

Power Minerals’ portfolio includes lithium brine resources in Argentina and rare earth and other critical mineral assets in Brazil.

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