Power Minerals (ASX:PNN) Gains Key ODI Approval, Unlocking $4M to Advance Rincon Lithium Project

2 min read | March 21, 2025 05:28 PM AEDT | By Team Kalkine Media

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Power Minerals (ASX:PNN) Gains Key ODI Approval, Unlocking $4M to Advance Rincon Lithium Project — Image source: Shutterstock

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Highlights

ODI approval unlocks US$4M funding for Rincon JV

Funds directed toward loan repayment and project development

Payment schedule agreed with Ultra Lithium for loan settlement

Power Minerals (ASX:PNN) has reached a significant milestone in the development of its Rincon Lithium Project, located within the broader Salta Lithium Project in Argentina. The company has received Overseas Direct Investment (ODI) approval for its joint venture with Navigate Energy, paving the way for a US$4 million funding release that is set to accelerate project activities.

The funding arrangement provides immediate financial support to progress the Rincon Joint Venture (Rincon JV). Of the total US$4 million, US$1 million will be allocated to repay a Convertible Loan previously extended by Legendary Star, ensuring streamlined capital structure for Power Minerals. In addition, US$400,000 will be paid to Power Minerals as part of the consideration for the joint venture’s acquisition of the Pocitos Lithium Project. The remaining US$2.6 million will be channelled into on-ground project development activities, fast-tracking the advancement of the Rincon JV.

This ODI approval not only facilitates the release of funds but also serves as a strong vote of confidence in the Rincon JV’s potential. The company is now positioned to move forward with the finalisation and incorporation of the new joint venture company. Once completed, the funds will be officially transferred and operational development will commence.

In parallel with the Rincon JV developments, Power Minerals has also renegotiated the terms of its Convertible Loan Agreement with Ultra Lithium Inc. (TSXV:ULI). The revised settlement plan includes an initial payment of A$50,000 scheduled for 21 March 2025, followed by two instalments of A$50,000 each on 15 April 2025, and concluding with a final A$100,000 payment on 30 April 2025. This structured approach supports the company’s broader financial planning and enhances flexibility in managing its capital resources.

The ODI approval and associated funding mark a strategic turning point for Power Minerals, setting the stage for the Rincon JV to progress from planning to execution. With the financial foundation now in place and joint venture formalities nearing completion, project development activities are set to ramp up, reinforcing the company’s position within the lithium exploration and development space.

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