Diversified minerals company Power Minerals Limited (ASX: PNN) (Power or the Company) is pleased to announce it has executed a binding sale and purchase agreement (Agreement) for the sale of its 100%-owned Santa Ines Copper-Gold Project in the Salta Province of Argentina (Santa Ines) for an all-cash consideration of A$1.5 million.
- Power executes binding agreement with Fuyang Mingjin New Energy Development Co., Ltd (Mingjin) for the sale of its Santa Ines Copper-Gold Project in Salta Province, Argentina
- Sale of the non-core Santa Ines Project is consistent with Power’s focus on becoming a leading lithium project developer in Argentina
- The all-cash consideration of $1.5m to Mingjin follows its recent $2.6m strategic investment in Power
- Combined proceeds of $4.1m to be utilised in the ongoing development of Power’s Argentinian lithium assets
The divestment on the non-core Santa Ines Project is consistent with Power’s commitment to becoming a leading lithium project developer in Argentina. The sale proceeds will be deployed in Power’s ongoing expedited development plans for it Salta Lithium Project.
Mingjin has completed its due diligence process and under the terms of the Agreement will pay Power A$1.5m to acquire 100% of the Santa Ines Project within the next 90 days.
“We are delighted to further enhance our relationship with Mingjin with the sale of our Santa Ines Project, following its recent strategic investment in Power. We plan to use the combined project sale and investment proceeds, of $4.1m, to continue the accelerated development of our Argentinian lithium assets.” – Power Minerals Managing Director, Mena Habib
Richlink Capital Group and Lynx Advisors Pty Ltd acted as advisors to the Project sale, and will receive a total 6% commission on completion of the Agreement.
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