Power Minerals ltd (ASX:PNN) Successful Completion of Due Diligence For The Morro Do Ferro Rare Earths Project, Brazil
13 April 2026
Price Sensitive Announcement $
Highlights:
▪ Power has completed all due diligence requirements for the acquisition of the Morro do Ferro rare earths project in Minas Gerais state, Brazil, and now plans to move forward to complete the acquisition
▪ Power’s technical evaluation to date has uncovered exceptional concentrations of magnetic rare earth oxides(MREO). The concentration of MREO is expected to drive the economics as these four elements account for >80% of the market value for all REE
▪ Historical drilling results have returned up to 35,332ppm (or 3.53% of whole rock) magnetic rare earth oxides (MREO) over a 2m interval in hole MFSR-47
Other historical results include –
▪ 100.2m at 6,103ppm MREO from surface to EOH, including 21.35m at 14,438ppm (or
1.44%) MREO from 41m (MFSR-04)
▪ 100.44m at 9,485ppm (or 0.95%) MREO from surface to EOH, including 19.3m at
22,541ppm (or 2.25%) MREO from 25m (MFSR-10)
▪ 60.6m at 13,129ppm (or 1.31%) MREO from surface to EOH (MFSR-20)
▪ Drilling conducted to date has only partially delineated the known extent of Morro do Ferro’s main deposit to the northeast and southwest, providing exciting potential for expansion
▪ Morro do Ferro is located within the Poços de Caldas Alkaline Complex, a wellestablished rare earth province in Brazil that hosts several advanced REE projects
▪ Next steps: finalise definitive agreement followed by deep RC and diamond core drilling on the main high-grade deposit, and aircore drilling to test for surrounding satellite deposits in the large un-drilled areas
Overview:
Power Minerals Limited has announced the successful completion of due diligence for the high-grade Morro do Ferro rare earths (REE) project in southern Minas Gerais state, Brazil (the MDF Project).
Power has completed comprehensive corporate, financial and technical due diligence over the MDF Project, and will now move to complete the acquisition of the MDF Project.
The 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-earths sector and help address the rising global demand for these essential mineral elements.
Power entered into a Binding Letter of Intent (LoI) with private exploration company Mineração Terras Raras (MTR) to acquire the MDF Project last month1 . The MDF 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.
Findings from Power’s technical due diligence have reinforced the remarkable concentrations of the Magnetic REEs, as part of the Total REEs concentration, intersected in drilling by the previous project owner .
With due diligence now successfully completed, Power will look to finalise the definitive agreement to complete the acquisition of the MDF Project in the next week.
Company Notes:
Power Minerals Managing Director Mena Habib said:
“With the successful completion of our corporate, financial and technical due diligence at Morro do Ferro, we are pleased to announce that we will now progress to finalise the definitive agreement to complete the acquisition. The exploration data we have gathered show strong promise for the region’s resource potential, indicating significant opportunities for growth. Power believes the deposit itself not only presents incredible upside for expansion but also offers favourable topographical advantages for future development.
Having bolstered our management team to include Alistair Stephens as CEO, whose extensive experience in rare earths exploration and development will be invaluable to our endeavours, we are excited to execute this transaction with vendor Mineração Terras Raras (MTR). We look forward to completing the acquisition and moving ahead to uncover the full potential of Morro do Ferro.”
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