Critical minerals heavyweight steps into Power Minerals’ corner

• Critical Metals will invest A$5m through European Lithium at 14c a share
• EUR-CRML is set to hold about 8% of Power on completion
• Proceeds will fund expanded drilling at Morro do Ferro

Special Report: Power Minerals has landed a heavyweight backer for its Brazilian rare earths ambitions, with Nasdaq-listed Critical Metals Corp agreeing to invest A$5m to accelerate drilling at the high-grade Morro do Ferro project.

Power Minerals (ASX:PNN) will raise A$5m through the at-market placement. On completion, the EUR-CRML group will hold about 8% of PNN.

The investment also brings PNN into the orbit of a group with interests in the Tanbreez rare earths project in Greenland and the Wolfsberg lithium project in Austria.

“We see this strategic, cornerstone investment in Power Minerals as a natural fit for our business model,” EUR-CRML executive chairman Tony Sage said.

The placement includes 17.86 million unlisted options that are exercisable at 18c and expiring three years after issue, subject to shareholder approval.

More drilling for Morro do Ferro

PNN will use the funds to expand drilling at Morro do Ferro, where a recent hole returned 111m at 8.25% total rare earth oxides (TREO) and 1.28% magnet rare earth oxides (MREO) from surface.

That included 51m at 15.42% TREO and 2.43% MREO from 24m, with a 1.2m sample grading 40.5% TREO and 7.73% MREO.

PNN has also defined a maiden exploration target of 9.2Mt to 10.7Mt at 7.8% to 9.2% TREO, with estimated MREO grades of 1.3% to 1.6%.

“This investment allows us to undertake a more aggressive drilling campaign as we continue to define and expand what we believe is a significant high-grade rare earth discovery,” managing director Mena Habib said.

PNN plans to test the mineralised system at greater depth and improve its understanding of the geology between drill sections. Drilling is ongoing, with results to be released as they become available.

Rare earth supply race

China accounted for 91% of global refined magnet rare earth output and 94% of permanent magnet production in 2024, according to the International Energy Agency. 

The concentration of supply has put a focus on finding and developing alternatives. 

PNN is also progressing mineralogy studies to guide metallurgical testwork, with initial outcomes expected this quarter. 

A passive seismic survey is underway to help map subsurface layers at Morro do Ferro.

This article was developed in collaboration with Power Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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