Highlights

  • PNN signs binding option to acquire Gamma Project with HREE and uranium potential.
  • Historical sampling reports high TREO and uranium grades, though non-JORC and unverified.
  • AUD 4.1m placement completed to support acquisition costs and exploration work.

Power Minerals Limited (ASX:PNN) has executed an agreement to acquire the Gamma Heavy Rare Earths (HREE) Project in San Bernardino County, California. The project is located in the same rare earth precinct as the Mountain Pass Mine, owned by MP Materials Corp, the only producing rare earth operation in the United States.

The acquisition involves PNN purchasing 100% of Californian Heavy Rare Earths Corporation Pty Ltd, which holds the option to acquire Paradigm Critical Minerals Ltd and, through it, Paradigm Exploration Ltd. These entities hold rights to 36 tenements that make up the Gamma Project. The option under the associated agreement was exercised on 4 October 2025.

Historical Exploration Indicators and Geological Setting

The Gamma Project has undergone past exploration for gold and uranium, with rare earth elements identified only more recently. Historic work, conducted before the introduction of JORC 2012, includes rock chip sampling that reported TREO values such as 20,233ppm, 16,978ppm and 12,356ppm. Uranium samples from the 1960s returned values up to 15,150ppm U. Drill data from 1968 includes a noted intercept of 30.33m at 0.37% U₃O₈e, with higher-grade intervals within the sequence.

The Company has issued a cautionary statement noting that the historical results do not meet JORC 2012 standards due to missing QAQC procedures, absence of laboratory protocols, incomplete location data and lack of sample verification. These results are considered qualitative and indicative only and require modern confirmation through systematic sampling and drilling.

Planned Early-Stage Work Programs

PNN’s current field activities include mapping and early-stage surface sampling. Planned exploration for the remainder of 2025 includes grid-based soil sampling and geophysical surveys to define priority targets for drilling.

The project area is situated on Bureau of Land Management land, which may streamline access arrangements. Several pegmatites and porphyritic dykes mapped across the tenements remain untested for rare earth mineralisation.

Placement to Fund Acquisition and Field Programs

The Company has completed an AUD 4.1m placement at AUD 0.10 per share to sophisticated and professional investors, including Tribeca Investment Partners and S3 Consortium. The placement will occur in two tranches, with AUD 3.4m settlement expected around 15 October 2025 and AUD 0.7m pending shareholder approval.

Participants are to receive one PNNOA option for every two shares issued, with an exercise price of AUD 0.10 and expiry on 29 December 2029. Funds will be allocated toward Gamma Project exploration, costs associated with the acquisition and general working capital.

Share Performance of PNN

PNN was trading 5.61% high at AUD 0.094 per share as of 10 November 2025.