Power Minerals Ltd (ASX:PNN) Completes Acquisition of Morro do Ferro Rare Earth Project
27 April 2026
Price Sensitive Announcement
Highlights:
▪ Power has completed its acquisition of the high-grade Morro do Ferro Rare
Earths Project (MDF Project) in Brazil, signing a Definitive Agreement with
private exploration company Mineração Terras Raras (MTR)
▪ Definitive Agreement follows Power’s technical evaluation uncovering
exceptional concentrations of magnetic rare earth oxides (MREO), including
neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb)
▪ MDF’s high MREO concentrations are expected to drive project economics, as
these four elements account for >80% of the market value for all REE
▪ Previous drilling returned up to 35,332ppm MREO (or 3.53% of whole rock) over a 2m interval in hole MFSR-47
▪ Other previous TREO results over entire downhole length include
o 100.44m at 49,910ppm (or 4.99%) TREO from surface to EOH in
drillhole MFSR-10
o 60.85m at 89,177ppm (or 8.92%) TREO from surface to EOH in drillhole
MFSR-35
o 70.9m at 79,997ppm (or 8.00%) TREO from surface to EOH in drillhole
MFSR-44
▪ Drilling conducted to date by previous owners has only partially tested the
known extent of MDF’s main deposit, providing exciting expansion potential
to the northeast and southwest
▪ MDF is located within the Poços de Caldas Alkaline Complex, a well established REE province in Brazil that hosts several advanced REE projects
▪ Next steps – accelerated fieldwork programs;
o RC and diamond drilling on the main high-grade deposit; and
o aircore drilling of surrounding areas to define new priority targets
Overview:
Power Minerals Limited (ASX: PNN | OTCQB: PEIMF) is pleased to announce it has completed the acquisition of the high-grade Morro do Ferro (MDF) Rare Earths Project in southern Minas
Gerais state, Brazil.
Power successfully completed comprehensive corporate, financial and technical due diligence over the MDF Project1, and has now executed a Definitive Agreement with the project vendors, private exploration company Mineração Terras Raras (MTR), and completed the acquisition.
Power entered into a Binding Letter of Intent (LoI) with MTR for the project last month. The Project is a very high-grade REE asset, strategically located within the Poços de Calders Complex, acknowledged as one of the world’s leading REE precincts.
With the acquisition complete, Power plans to accelerate exploration programs at the Project to unlock its full value potential. This will include deep (>200m) diamond core and RC drilling to continue to define the main deposit, where mineralisation remains open at depth and along strike – with much of its extent poorly defined. Aircore drilling is also planned to identify new REE target areas outside the main deposit.
Positive due diligence outcomes
Due diligence confirmed the MDF Project’s substantial potential for the definition of a significant magnetic rare earth oxides (MREO) Mineral Resource Estimate (MRE), and its strategic alignment with Power’s project portfolio. Power is confident that the acquisition of the MDF Project will position the Company as an emerging leader in the rare-earth sector and help address the rising global demand for these essential mineral elements.
Findings from Power’s technical due diligence have reinforced the remarkable presence of magnetic REEs as part of the Total REEs concentration, intersected in drilling by the previous project owner. The MDF Project’s exceptionally high-grade Total REE drilling intercepts included the following significant weighted average results for the full length of selected diamond cored drillholes:
- 100.44m at 49,910ppm (or 4.99%) TREO from surface to EOH in drillhole MFSR-10
- 100.2m at 29,417ppm (or 2.994%) TREO from surface to EOH in drillhole MFSR-04
- 70.9m at 79,997ppm (or 8.00%) TREO from surface to EOH in drillhole MFSR-44
- 60.85m at 89,177ppm (or 8.92%) TREO from surface to EOH in drillhole MFSR-35
- 60.6m at 70,217ppm (or 7.02%) TREO from surface to EOH in drillhole MFSR-20.
Numerous drillholes have significant TREO grades at the end of the hole. Diamond core drillhole MFSR-36 was drilled to a depth of 100.05m, with the last sample from the drillhole (sample 814) over 2.05m still contained 28,674ppm (or 2.87%) TREO from 98m downhole.
Next steps
Power plans to commence expedited fieldwork programs at MDF, which will include initial drilling programs, as outlined below;
- Diamond core and RC drilling to augment drilling completed by the previous project owner and further define the REE main deposit. Primary mineralisation at the main deposit remains open at depth and along strike, with much of its extent yet to be fully defined; and
- Aircore drilling of selected areas outside the main deposit. This will include infill drilling of previous shallow (~10m) auger drilling, and extension drilling to identify new priority REE targets.
Power Minerals Managing Director Mena Habib said:
“We are delighted to have completed the acquisition of the Morro do Ferro Project, having only entered into an LoI to acquire the Project in the previous month and completing comprehensive due diligence earlier this month. The Project represents a well-validated, high-grade, rare-earth asset in an emerging global rare-earth hub in Brazil and is an ideal complement to our Brazilian project portfolio. An assessment of available exploration data highlights the Project’s strong Mineral Resource potential and excellent expansion upside, subject to further exploration. The Project also has significant topographical advantages that we will seek to exploit in any future development. Leveraging the extensive technical expertise of our management team, we look forward to expediting our initial exploration programs at MDF to realise its full value proposition.”
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