Highlights

  • Power Minerals announced an AUD 5.0 million strategic Placement on 3 November 2026.
  • The agreement covers 35,714,286 ordinary shares issued at AUD 0.14 each.
  • The investor group is expected to hold approximately 8% following completion.
  • A proposed 17,857,143 attaching Options require Shareholder approval.
  • Proceeds are intended for expanded drilling and exploration at Morro do Ferro in Brazil.

Power Minerals Limited (ASX:PNN) explores and develops critical minerals projects in South America, including the Morro do Ferro rare earths project in Brazil and the Salta lithium project in Argentina. On 3 November 2026, the company announced an agreement for an AUD 5.0 million strategic Equity Investment intended to support additional exploration at Morro do Ferro. The funding proposal supports ongoing exploration and metallurgical investigations.

AUD 5 Million Placement and Proposed Investor Interest

Under the announced subscription agreement, Critical Metals Corp, through its Australian Subsidiary European Lithium Limited, is to subscribe for 35,714,286 fully paid ordinary shares in Power Minerals (ASX:PNN) at AUD 0.14 per share. The proposed issue would raise AUD 5.0 million in gross proceeds. Power stated that the shares would be issued under its available placement capacity, with the investor group expected to hold an approximately 8% interest after completion. The announcement describes the transaction as a strategic investment, not an agreement to develop or purchase project output.

The proposed placement also includes 17,857,143 unlisted options, equivalent to one option for every two subscribed shares. These carry an AUD 0.18 exercise price and expire three years after issue. Their issue remains subject to the necessary shareholder approvals. Consequently, the ordinary share subscription and the attaching option approvals should not be treated as identical milestones.

Morro do Ferro Drilling and Subsurface Work

Power Minerals (ASX:PNN) said placement proceeds would be directed towards exploration at Morro do Ferro, including an expanded drilling programme designed to test mineralisation at depth. Drilling was ongoing at the time of the announcement, with results to be released progressively as they became available. The company characterised mineralisation as remaining open in multiple directions, an interpretation that requires further drilling to establish continuity and extent.

Alongside drilling, Power reported that a passive seismic survey was underway using three-component velocimeters to measure ambient seismic noise. The intended purpose is to map subsurface layers and improve the geological interpretation of mineralisation at depth. Such surveying provides information for exploration planning; it does not, by itself, establish a mineral resource or demonstrate that Mining would be economically viable.

Mineralogy, Metallurgy and Funding Conditions

Mineralogy studies were also progressing, according to Power Minerals (ASX:PNN), to inform the design of metallurgical test work. The company expected initial outcomes during the December quarter of 2026. These were prospective study results rather than completed recovery or processing performance figures. Future conclusions about potential extraction methods will depend on the actual test results and subsequent technical assessment.

The announcement identified fees payable to the placement lead manager, including a 2% management fee and 4% selling fee on gross proceeds, plus GST. It also proposed 10,000,000 listed options for the lead manager or its nominee, conditional on completion and shareholder approval. These arrangements are separate from the investor options.

Key Insights

The AUD 5.0 million agreement gives Power Minerals (ASX:PNN) a defined financing proposal for further work at Morro do Ferro, while several important outcomes remain ahead. Share issuance, required option approvals, deeper drilling results and metallurgical findings will determine how the exploration programme progresses. The company has described opportunities for future collaboration with the investor group, but the announcement does not establish an offtake contract, completed development decision or commercial production timetable. The distinction between committed placement terms and prospective project outcomes remains central to assessing the 2026 update.