What powered PepinNini Minerals’ (ASX:PNN) ~60% rally today

Highlights

  • Shares of PepinNini Minerals Limited (ASX:PNN) surged significantly today on the back of a new agreement.
  • The company has inked an agreement with Litio Minera SA, a subsidiary of Ganfeng Lithium, for a pipeline to carry lithium brine.
  • A 12-day survey is also planned to commence in October for offering an interpretive tool for both parties.

Shares of diversified ASX-listed exploration company PepinNini Minerals Limited (ASX:PNN) witnessed a wild upswing of 60.49% to trade at AU$0.545 per share on Friday. The surge was triggered by an upbeat announcement by the diversified miner, which stated that the subsidiary of PPN, PepinNini SA, has inked an agreement with Litio Minera SA, a subsidiary of Ganfeng Lithium for a pipeline to carry lithium brine from its Mariana Project.

Ganfeng is one of the world’s biggest producers of lithium, which is used to manufacture electric vehicle batteries.

PPN holds prospective exploration tenements for nickel-copper-cobalt-PGE in South Australia’s Musgrave Province and for Kaolin on the Eyre Peninsula. Additionally, the company also holds a minerals brine resource in Argentina’s Salta Province.

Related Article: 7 ASX listed lithium shares that are up considerably in the last one year

Eco-friendly transportation of brine

As per the agreement, the pipeline is proposed to run from Ganfeng’s Mariana Project to the northeast, crossing the Santa Ines Project en route. Notably, the transportation of brine through a pipeline is a more effective and eco-friendly way when compared to transportation via roads.

Related read: Three ASX-listed undervalued lithium stocks

Geophysical survey agreement

In addition to this, the agreement will also see both companies undertake an Induced Polarisation (IP) geophysical survey on the 11km stretch of the proposed pipeline trace within PNN SA’s Santa Ines Project. The cost of the survey will be met by both parties.

Related Article: 5 Hot Lithium (Li) stocks on ASX

The survey is expected to begin in October and will last for a period of 12 days, providing a useful interpretive tool for both parties. For Ganfeng, the survey would provide an assurance that the pipeline trace will not require any relocation in case of a mineral discovery, while for PNN, it will be an exploration tool for copper-gold mineralisation for drill testing.

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