Power Minerals Ltd (ASX:PNN) Enters LOI to Acquire High-Grade REE Project
5 March 2026
Price Sensitive Announcement $
Highlights:
▪ Binding Letter of Intent (LOI) entered to acquire the advanced and high-grade Morro do Ferro project located in the mining-friendly jurisdiction of Minas Gerais state, Brazil
▪ The Morro do Ferro is a very high-grade and well-validated rare earth asset, distinguished by
multiple drilling intersections 5% Total Rare Earth Oxides (TREO) and mineralised from surface
▪ Significant weighted average results for the full length of selected diamond cored drillholes:
60.85m at 89,177ppm (or 8.92%) TREO from surface to EOH in drillhole MFSR-35
70.9m at 79,997ppm (or 8.00%) TREO from surface to EOH in drillhole MFSR-44
60.6m at 70,217ppm (or 7.02%) TREO from surface to EOH in drillhole MFSR-20
100.44m at 49,910ppm (or 4.99%) TREO from surface to EOH in drillhole MFSR-10
60.0m at 53,859ppm (or 5.39%) TREO from surface to EOH in drillhole MFSR-46
80.3m at 43,348ppm (or 4.33%) TREO from surface to EOH in drillhole MFSR-38
70.7m at 45,028ppm (or 4.50%) TREO from surface to EOH in drillhole MFSR-32
▪ Significant weighted average results for the full length of selected auger drillholes:
9m at 117,706ppm (or 11.77%) TREO from surface to EOH in drillhole MFT-033
10m at 71,904ppm (or 7.19%) TREO from surface to EOH in drillhole MFT-034
10m at 60,109ppm (or 6.01%) TREO from surface to EOH in drillhole MFT-055
10m at 65,337ppm (or 6.53%) TREO from surface to EOH in drillhole MFT-056
▪ Individual Ultra-high-grade REE samples include:
2m at 241,301ppm (or 24.13%) TREO in sample 1156 from drillhole MFSR-44, 14-16m
2m at 177,489ppm (or 17.75%) TREO in sample 1031 from drillhole MFSR-35, 44-46m
2m at 169,825ppm (or 16.98%) TREO in sample 1028 from drillhole MFSR-35, 38-40m
2m at 163,080ppm (or 16.31%) TREO in sample 409 from drillhole MFSR-20, 26-28m
▪ Individual Ultra-high-grade MREO samples include:
2m at 34,835ppm (or 3.48%) MREO in sample 558 from drillhole MFSR-47, 9-11m
2m at 33,569ppm (or 3.36%) MREO in sample 1031 from drillhole MFSR-35, 44-46m
2m at 31,860ppm (or 3,19%) MREO in sample 1028 from drillhole MFSR-35, 38-40m
2m at 31,527ppm (or 3.15%) MREO in sample 17619 from drillhole MFSR-10, 13.95-33.95m
▪ Mineralisation remains open at depth and along strike with extremely high-grade
mineralisation at the end-of-hole in multiple drillholes
▪ Project sits on a unique ‘Manifesto’ mining title, which gives the project owner direct ownership of the land with no local third-party approvals required for exploration activities
▪ The primary rare earth mineralisation identified is hosted in bastnäsite, comparable to the
producing Mountain Pass Mine (USA), one of the world’s largest REE operations
▪ Power has received firm commitments for circa $10 million equity raise strongly supported by US institutional investors; Power will begin preparations for an aggressive multi-rig drilling
campaign with strong news flow expected throughout 2026
Overview:
Power Minerals Limited has announced that it has entered into a Binding Letter of Intent (LoI) with private exploration company Mineração Terras Raras (MTR) for the acquisition of the high-grade Morro Do Ferro Rare Earth Elements (REE) Project (the Project) in the southern region of Minas Gerais state, Brazil.
The Project is a very high-grade, well-validated REE asset, strategically located within the centre of the Poçosde Calders Complex, acknowledged as one of the world’s leading REE precincts.
The project sits on a ’Manifesto’ mineral title. This is a mining permit that is classed as real property, which provides the project owner with direct ownership of the land and requires no third-party approvals, other than environmental, for ground-disturbing exploration, including drilling.
The acquisition would complement Power’s existing high-grade Santa Anna Niobium-REE Project in Goiás state, Brazil, and position the Company as a leading Brazilian-focused strategic critical-minerals exploration and development company.
Completion of the acquisition is subject to a 30-day due diligence period. Power’s technical team is currently on-site at the Project and has commenced the due diligence process. A summary of the material transaction terms, including acquisition consideration, is provided in this announcement.
The Project is an extremely high-grade REE deposit, with numerous drilling intersections reporting results in excess of 50,000ppm (or 5%) TREO (Table 1). The deposit formed under supergene lateritic weathering conditions, continuing into fresh material at depth, to the limits of current drilling.
The Project has been subject to a substantial amount of drilling by the previous owners, including 50 holes for a total of 4157.59m of diamond core drilling, and 106 holes for a total of 846.5m of auger drilling. Highlight drilling results include:
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
▪ 60.6m at 70,217ppm (or 7.02%) TREO from surface to EOH in drillhole MFSR-20
▪ 41.0m at 22,820ppm (or 2.28%) TREO from surface to EOH in drillhole MFSR-29
▪ 90.9m at 29,947ppm (or 2.99%) TREO from surface to EOH in drillhole MFSR-31
▪ 70.7m at 45,028ppm (or 4.50%) TREO from surface to EOH in drillhole MFSR-32
▪ 60.85m at 89,177ppm (or 8.92%) TREO from surface to EOH in drillhole MFSR-35
▪ 100.05m at 39,818ppm (or 3.98%) TREO from surface to EOH in drillhole MFSR-36
▪ 80.3m at 43,348ppm (or 4.33%) TREO from surface to EOH in drillhole MFSR-38
▪ 70.75m at 27,823ppm (or 2.76%) TREO from surface to EOH in drillhole MFSR-40
▪ 100.3m at 24,198ppm (or 2.42%) TREO from surface to EOH in drillhole MFSR-43
▪ 70.9m at 79,997ppm (or 8.00%) TREO from surface to EOH in drillhole MFSR-44
▪ 60.0m at 53,859ppm (or 5.39%) TREO from surface to EOH in drillhole MFSR-46
▪ 60.35m at 33,983ppm (or 3.40%) TREO from surface to EOH in drillhole MFSR-47
▪ 80.5m at 29,872ppm (or 2.99%) TREO from surface to EOH in drillhole MFSR-50
Significant weighted average results for the full length of selected auger drillholes:
▪ 9m at 117,706ppm (or 11.77%) TREO from surface to EOH in drillhole MFT-033
▪ 10m at 71,904ppm (or 7.19%) TREO from surface to EOH in drillhole MFT-034
▪ 10m at 22,854ppm (or 2.29%) TREO from surface to EOH in drillhole MFT-042
▪ 10m at 26,610ppm (or 2.66%) TREO from surface to EOH in drillhole MFT-043
▪ 10m at 60,109ppm (or 6.01%) TREO from surface to EOH in drillhole MFT-055
▪ 10m at 65,337ppm (or 6.53%) TREO from surface to EOH in drillhole MFT-056
Company Notes:
Power Minerals Managing Director Mena Habib commented:
“We are excited to share a potential major advancement in our Brazilian project portfolio with this Binding Letter of Intent to acquire the Morro do Ferro Rare Earths Project. This represents an extremely high-grade, well-validated rare earths asset in an emerging global rare earths hub with previous drilling intersections in excess of 50,000ppm (5%) TREO. In addition, the project sits on a specific type of mining permit, which gives the project owner direct ownership of the land, meaning no local third-party approvals will be required for our exploration programs, including drilling.
The acquisition would be an ideal complement to the Company’s other Brazilian asset, the Santa Anna Niobium and REE Project in Goiás state. It would enhance Power’s position as a leading Brazilian-focused critical minerals explorer and developer. The acquisition is subject to a 30-day due diligence period, and our technical team is already on-site and has commenced this initial phase of fieldwork.
The Project is ideally located in Poços de Caldas, one of the world’s pre-eminent rare earth regions, and is well situated relative to requisite physical infrastructure. It is also strategically positioned adjacent to the ASX-listed rare earth projects of Meteoric Resources and Viridis Mining & Minerals (ASX: VMM).
Subject to the successful completion of due diligence, Power will move to execute a definitive agreement with the project vendors and complete the acquisition, and then expedite on-ground exploration programs to fully realise the Project’s value proposition.
We are excited by the potential of the Morro do Ferro Project, and look forward to sharing outcomes of our due diligence process in the month ahead.”
Full ASX Announcement: Power Minerals ASX Announcement