Power Minerals Ltd (ASX:PNN) Terminates Rincoln Lithium JV to Retain 100% Ownership
Highlights:
▪ Power recognises the significant upside potential of its Rincon Lithium Project and is committed to pursuing more attractive funding and development pathways to maximise value for
shareholders
▪ Given strong current lithium market conditions and outlook, and
opportunities afforded by the Rincon Project’s strategic location, the Rincon JV did not represent the optimal value proposition for the development of the Rincon Project
▪ The JV partners have agreed to terminate Rincon JV, allowing Power to retain a 100% project interest
▪ Discussions are now underway with potential new funding and development partners with the view to fast track development
▪ An engineering study is also to commence regarding the installation of evaporation ponds at the Rincon Project
▪ The Rincon Project is the most advanced asset within Power’s Salta Lithium Project; Significant JORC 2012 Mineral Resource of 292,564t LCE
▪ Robust Preliminary Economic Assessment (PEA) completed to
Scoping Study standard
▪ Strategically located adjacent to Rio Tinto and Argosy Minerals’ Rincon lithium projects
▪ Freshwater source to be provided via the Pocitos Project, which will form a key to Powers DLE plant at Pocitos
Overviewr:
Power Minerals Limited has advised that it is implementing a new development strategy for the Rincon Lithium Project in Salta province, within the lithium triangle of Argentina. Key to this strategy, Power has agreed with its joint venture partner, Navigate Energy Technology Limited (Navigate Energy), to terminate the Rincon Joint Venture agreement (Rincon JV) and related project documentation.
Under the Rincon JV, Navigate Energy was to earn a 59% interest by investing US$4m. Against the backdrop of a resurgent lithium price and a positive lithium demand outlook, Power has reassessed the Rincon JV arrangements to determine the best development pathway to deliver value from the Rincon Project.
As a result of this process, Power has determined that given the strong current lithium market conditions and improving outlook, and the opportunities afforded by the Rincon Project’s strategic location within the Rincon Salar, related supporting tenure and access to infrastructure, the Rincon JV arrangements no longer represent Power’s optimal value proposition for the development of the Rincon Project.
With ASX peer Argosy Minerals’ Rincon lithium being on the Rincon salar, Power believes it can achieve a similar path to production. As a next development step, Power will progress an engineering study for the installation of evaporation ponds, which support enhanced production. Power also intends to establish a production hub for the Rincon Project at its nearby Pocitos Project, due to its proximity to existing infrastructure and potential to provide a fresh water source, which is required for processing brine from the Rincon Project.
The JV parties have agreed to terminate the Rincon JV effective from the date of repayment of the US$1 m facilitated by Navigate Energy as part of the Rincon JV arrangements. Conditional upon repayment, the termination date is planned to be not later than 28 February 2026.
As part of Power’s assessment of the joint venture, premised on termination of the Rincon JV, Power has taken a proactive decision to pursue new options that better align with the value position the Rincon Project represents. Power has commenced initial discussions with potential joint venture partners to maintain control by holding a majority stake in arrangements for future funding and development of the Rincon Project.
Power intends to secure future funding and development arrangements by leveraging the strengthening lithium market and the Rincon Project’s strategic location within an operating lithium producing salar to maximise value to shareholders and the Company.
About the Rincon Project
The Rincon Project is Power’s most advanced asset within its wider Salta Lithium Project, and the Company remains committed to its development into a lithium producing operation. Rincon is strategically located adjacent to Rio Tinto’s and Argosy Minerals’ projects, which are also progressing developments on the Rincon salar.
Power’s Rincon Project hosts a JORC Mineral Resource of 292,564 tonnes LCE, comprising 157,130 tonnes LCE at 258 mg/L Li of Measured + Indicated Resources and 135,433 tonnes of LCE at 276 mg/L Li of Inferred Resources (ASX announcements 1 and 2 November 2023)1.
Power has also completed a positive Preliminary Economic Assessment for the Rincon project (completed to Scoping Study-level), the details of which are provided in the ASX announcement of 27 November 2023.
Further information on the Rincon Project and the Rincon JV is provided in ASX announcements of 2 September 2024, 8 July 2025 and 9 December 2025
Next steps
Power has commenced initial discussions with a number of new potential partners to fund the development of the Rincon Project into a significant lithium producing operation.
Operationally, the next step at the Project will be the development of a lithium brine pilot plant for brine testing (subject to funding). A pilot plant would test the Project’s lithium brine qualities and help tailor suitable Direct Lithium Extraction (DLE) technology to maximise output from a commercial-scale lithium production operation.
Power will also repay the initial US$1 million in operational funding introduced by Navigate Energy as part of the transaction arrangements to advance the Rincon JV.
Company Notes:
“We are committed to maximising value from the Rincon Lithium Project, the largest and most advanced of our Salta Lithium Project assets. Given the strengthening lithium price over the
past six months and a positive lithium market outlook, it was essential for Power Minerals to revisit the Rincon JV terms and partnering and assess the potential to deliver a stronger value
proposition for shareholders and Power Minerals. The outcome of this process was a mutual decision to terminate the Rincon JV. We thank Navigate Energy for their valued commitment to supporting the Rincon JV process.
We now look forward to advancing exploration with a goal to fast-track to a pilot plant scale project.”
Mena Habib, Managing Director of Power Minerals Limited
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