Power Minerals announces strategic acquisition of Tântalo Project in Brazil

Power Minerals Limited (ASX:PNN) has executed a Term Sheet for an exclusive option to expand its Brazilian project portfolio through the strategic acquisition of the Tântalo Project in Paraiba state, Brazil. The Tântalo Project, located immediately south of Power's Nióbio niobium, rare earth elements (REE), and lithium project, represents a significant expansion of Power's ground position in the region, reinforcing its position as a South American-focused explorer and developer.

Executive Commentary on Tântalo Project Acquisition

This is a key transaction in Power's strategy to establish a significant footprint in an established exploration precinct in Brazil. Completing the acquisition of the Tântalo Project would materially expand our ground position in the region, which also hosts our Nióbio Project. Our initial fieldwork at Nióbio has generated high-grade niobium, tantalum, and REE results, and the Tântalo Project gives us the opportunity to adopt our successful exploration strategy on a larger project area, located just south of our existing tenure. With the Tântalo Project area being underpinned by Garimpo Licence titles, we aim to commence fieldwork, with drilling a priority, as soon as possible. Subject to successful initial exploration, this gives us the opportunity to realize near-term value from the project. - Power Minerals Managing Director Mena Habib

Summary of Tântalo Project Acquisition and Outlook

Power Minerals Limited (ASX:PNN) has strategically executed a Term Sheet for an exclusive option to acquire the Tântalo Project in Paraiba state, Brazil. The Tântalo Project, located immediately south of Power's Nióbio niobium, rare earth elements (REE), and lithium project, offers a significant expansion of Power's ground position in the region. The project area is covered by Garimpo Licences, providing an expedited approval pathway for on-ground exploration, with first-pass drilling planned for CY2024 (subject to results). The acquisition of the Tântalo Project presents a strategic opportunity for Power to materially expand its ground position in an emerging niobium exploration precinct in Brazil. Power aims to adopt its successful exploration strategy from the Nióbio Project to advance the Tântalo Project, potentially realizing near-term value from the project. The terms of the acquisition include an upfront payment of A$50,000 for the Option over the Tantalo Project, subsequent payments, a milestone payment, and a Net Smelter Royalty (NSR) of 2% of the gross revenue generated from the sale of mineral products. Power Minerals is focused on the development of its lithium assets in Argentina, exploration of the Niobio Niobium Project in Brazil, and delivering value from its non-core Australian projects.