Power Minerals (ASX:PNN) resets Rincon strategy by exiting joint venture to regain full project control

Power Minerals has moved to terminate its joint venture at the Rincon Lithium Project in Argentina, electing to consolidate 100% ownership of what it describes as its most advanced asset within the Salta Lithium Project portfolio, as the company reassesses development pathways against strengthening lithium market conditions and an improving sector outlook.

Highlights

• Rincon Joint Venture with Navigate Energy Technology Limited to be terminated, returning 100% project ownership to Power
• Navigate Energy was earning a 59% interest for US$4m under the original agreement
• Rincon hosts a JORC 2012 Mineral Resource of 292,564t LCE
• Project is located on the Rincon salar in Salta Province, Argentina, adjacent to operations controlled by Rio Tinto and Argosy Minerals
• A Scoping Study level Preliminary Economic Assessment has been completed
• Engineering study to commence on the installation of evaporation ponds
• Pocitos Project to provide freshwater supply and potential processing hub for a future Direct Lithium Extraction facility
• Repayment of US$1m to Navigate Energy to formalise termination, targeted by 28 February 2026

The original joint venture structure provided for Navigate Energy to earn a 59% interest through a US$4m investment, however Power has concluded that the arrangement no longer represents the optimal value proposition given the project’s location on an operating salar, the improving lithium price environment and the company’s assessment of development optionality.

Rincon sits within the lithium triangle of Argentina and is strategically positioned on the Rincon salar, immediately adjacent to lithium developments operated by Rio Tinto and Argosy Minerals.

Power has stated that the project’s tenure, infrastructure access and geological setting support a development pathway comparable to nearby peers, with the company now seeking to progress studies that could underpin a standalone production hub centred on brine processing and evaporation infrastructure.

The company has completed a Preliminary Economic Assessment to Scoping Study standard and defined a JORC Mineral Resource of 292,564t LCE, including Measured, Indicated and Inferred categories, based on drilling that has intersected lithium bearing brines to depths exceeding 605 m without reaching basement.

These parameters form the technical foundation for the next phase of engineering and processing studies, including the evaluation of evaporation ponds and the potential application of Direct Lithium Extraction technologies supported by freshwater supply from the nearby Pocitos Project.

Managing Director Mena Habib said the decision followed a reassessment of strategic options in light of market conditions, noting that

“given the strengthening lithium price over the past six months and a positive lithium market outlook, it was essential for Power Minerals to revisit the Rincon JV terms and partnering and assess the potential to deliver a stronger value proposition for shareholders and Power Minerals.”

With the joint venture to be unwound following repayment of US$1m to Navigate Energy, Power has commenced discussions with potential new partners, with an emphasis on retaining a majority interest while securing funding for development activities.

Planned work includes an engineering study for evaporation pond installation and, subject to funding, the advancement of a lithium brine pilot plant to support brine testing and process optimisation, including the tailoring of Direct Lithium Extraction technology for commercial scale development.

The reset of the ownership structure positions Rincon as a wholly owned development asset at a time when major producers continue to advance projects across the lithium triangle, reinforcing the strategic relevance of salar based brine resources with established infrastructure and defined resources.

For Power, the shift marks a transition from joint venture incubation to a control focused development model, with the Rincon Project now central to its Argentine growth strategy as it evaluates funding, processing and partnering pathways within an increasingly competitive lithium landscape.

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