Power Minerals (ASX:PNN) executes A$1.7M strategic investment for Morro do Ferro REE Project in Brazil

Power Minerals has executed a binding subscription agreement with an international specialist resources investment fund for a A$1.7 million strategic equity placement at A$0.145 per share, being equal to the Company’s closing share price on 17 June 2026.

Funds will be applied to the Morro do Ferro rare earth elements project in Minas Gerais, Brazil, where maiden diamond drilling and metallurgy test work are underway.

Highlights

• A$1.7 million strategic equity placement completed under subscription agreement
• Investment from international specialist resources investment fund
• Issue price A$0.145 per share equal to 17 June 2026 closing price
• 11,724,138 fully paid ordinary shares to be issued
• 5,862,069 PNNOA listed options issued
• Option exercise price A$0.10 with expiry 31 December 2029
• Funds allocated to Morro do Ferro REE Project in Brazil
• Maiden diamond drilling underway at Morro do Ferro
• Metallurgy test work underway at Morro do Ferro
• Securities issued under ASX Listing Rule 7.1 capacity
• Settlement expected within three business days of execution

The subscription agreement provides for the issue of 11,724,138 fully paid ordinary shares and 5,862,069 listed PNNOA options to an international resources sector investment fund, with the options issued on a one for two basis, an exercise price of A$0.10, and an expiry date of 31 December 2029.

The Company states that funds from the placement will be used to advance activities at its Morro do Ferro rare earth elements project in Brazil, where maiden diamond drilling has commenced and metallurgy test work is ongoing in Minas Gerais state.

The securities will be issued under the Company’s available placement capacity pursuant to ASX Listing Rule 7.1, with settlement expected within three business days of execution of the subscription agreement.

Power Minerals Managing Director Mena Habib commented:

“Securing this strategic investment with a such a high-calibre international resource fund is a major validation of our strategy and the opportunity presented by our Morro do Ferro REE Project in Brazil…”

The announcement confirms that drilling and metallurgy test work are underway at Morro do Ferro, and that the placement forms part of the Company’s capital raising activity associated with its exploration program.

Morro do Ferro in Minas Gerais, Brazil, is the project referenced in the announcement for the use of proceeds, with drilling and technical work ongoing as disclosed by the Company.

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