Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Power Minerals to acquire 100% of the Gamma HREE Project near Mountain Pass Mine.
  • Historical non-JORC sampling shows TREO up to 20,257ppm and uranium up to 1.786% U3O8.
  • AUD 4.1m placement completed with participation from Tribeca Investment Partners and S3 Consortium.

Power Minerals Limited (ASX:PNN) is an ASX-listed exploration and development company with projects in lithium in Argentina, niobium and rare earths in Brazil, and other mineral assets in Australia.

Acquisition Overview

PNN has entered a binding agreement to acquire the Gamma Heavy Rare Earths (HREE) Project in San Bernardino County, California, U.S.A., located southwest of the Mountain Pass Mine (MP Materials Inc; NYSE: MP; market cap USD 20 bn).

Under the agreement, PNN will acquire 100% of Californian HRE, which holds an option to acquire Paradigm Critical Minerals Ltd. Paradigm Critical Minerals owns Paradigm Exploration Ltd., which holds 36 tenements covering the Gamma Project via an option from Sundown Resources LLC. The Option was exercised on 4 October 2025.

Project Location and Geology

The Gamma Project is in a mining-supportive region with direct highway access to the Mountain Pass REE Mine, the only operating REE mine in the U.S. Historical exploration focused on gold and uranium, with rare earth elements identified more recently. Distinct uranium zones are separate from rare earth zones, similar to the Mountain Pass deposit.

Historical Exploration Data

Historical rock chip sampling at the Gamma Project reported TREO concentrations of 20,257ppm, 16,978ppm, and 12,384ppm, with corresponding HREO content of 10,732ppm, 8,830ppm, and 5,897ppm. Uranium results from historical analyses recorded 15,150ppm U (1.786% U3O8) and 10,300ppm U (1.214% U3O8), including a drilling intersection of 6.25m at 1.30% U3O8e from 24.08m depth. These results are based on historical, non-JORC compliant work and require contemporary exploration to verify their reliability and relevance.

Exploration Plans

PNN plans systematic sampling, geophysical surveys, and eventual drilling. The exploration team is on-site conducting mapping and early-stage sampling. Future work will focus on HREE and uranium potential.

Placement and Funding

PNN completed an AUD 4.1m placement with participation from Tribeca Investment Partners and S3 Consortium. Tranche 1 of AUD 3.4m is expected to settle on 15 October 2025, with Tranche 2 of AUD 0.7m subject to shareholder approval. Placement participants will also receive options exercisable at AUD 0.10 per share, expiring 29 December 2029.

Funds raised will be used for Gamma Project exploration, existing project development, acquisition costs, and general working capital.

Acquisition Terms

Key terms include a USD 625,000 cash consideration to shareholders of Californian HRE and BC Ltd, Upfront Consideration Shares totaling 37.5 million at AUD 0.065 per share (subject to shareholder approval), and Deferred Consideration Shares contingent on exploration milestones. Completion depends on due diligence, shareholder and regulatory approvals, and third-party consents.

Managing Director Comment

Mena Habib stated:

“We are very excited about the potential of the Gamma Project to add to and complement, our suite of critical minerals projects... Our future exploration plans involve carrying out systematic sampling and conducting geophysical surveys, with a focus on expediting progress towards drilling on the results obtained.”

Share performance OF PNN

The company is currently trading at AUD 0.172 per share, stock up by 32.692% from previous close of AUD 0.130