Power Minerals Limited (ASX: PNN), an Australian-based mineral exploration company focused on developing lithium and other mineral resources, has announced that it has entered into a non-binding Term Sheet with Summit Explore Corporation, a subsidiary of Summit Nanotech, a leading sustainable Direct Lithium Extraction (DLE) provider. The agreement focuses on strategic investment and the development of Power’s five lithium brine salars at its Salta Lithium Project in Argentina, encompassing the Incahausi, Rincon, Pocitos, Pular, and Arizaro salars.
The Term Sheet outlines a detailed framework for development work and the proposed grant of options, with both parties committing to negotiate and execute a binding Definitive Agreement for the Projects’ development. Under the Definitive Agreement, Summit Explore will have the option to acquire a 59% joint venture interest in the Projects upon funding and building a 5,000-tonne commercial DLE plant. Summit Explore plans to initially fund up to US$6 million on the Area of Influence to complete required exploration, including drilling water and pumping wells.
As part of its earn-in obligations, Summit Explore will arrange and fund brine compatibility analysis and an extraction efficiency study incorporating brine from the Area of Influence. Summit’s Alpaca DLE demonstration facility in Santiago, Chile, will provide detailed engineering designs and estimates for commercial-scale production. Furthermore, Summit Explore will secure an option to acquire the Salta Project for US$50 million, exercisable during the PFS period, the duration of which will be defined in the Definitive Agreement.
The collaboration between Power Minerals and Summit aims to deliver commercial-scale production of high-quality lithium from Power’s Argentinian assets, either through a joint venture or a potential high-value divestment. Both companies will now work towards finalising the Definitive Agreement within 90 days. Summit Nanotech CEO Amanda Hall stated that the brines in this region are compatible for blending, and Summit Nanotech’s technology provides the perfect platform for economic extraction and the creation of high-quality lithium products.
