Power Minerals agrees to A$5M cornerstone placement for Brazil rare earths
Critical Metals would take an approximately 8 per cent stake, with proceeds supporting expanded Morro do Ferro drilling.
Theo Marchetti
Power Minerals Limited ASXPNN OTCMKTSPEIMF said in a Nov. 3 ASX announcement it had agreed to an A$5 million cornerstone placement at A$0.14 a share. The subscription would give Critical Metals Corp NASDAQCRML an approximately 8 per cent stake upon completion, according to Power's announcement.
Power identified European Lithium Limited ASXEUR as the Australian subsidiary through which the investment would be made. Power is an exploration and development company advancing the Morro do Ferro rare earth project in Brazil, where the proceeds would support expanded drilling, resource definition and development planning.
Power's ASX shares were quoted at A$0.15 at 10:43 a.m. AEDT on Nov. 3, according to ASXPNN. The financing remains an agreed subscription, with the release giving no completion date.
The subscription agreement provides for 35,714,286 new ordinary shares using Power's available capacity under ASX Listing Rule 7.1. Attached options require shareholder approvals, and the company expects initial mineralogy outcomes during the fourth quarter of 2026.
"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," Power managing director Mena Habib said in the release.
Options Add To The Proposed Share Issue
The Nov. 3 placement terms include 17,857,143 unlisted options, allocated on the basis of one option for every two shares subscribed for. They would be exercisable at A$0.18 each and expire three years after issue.
Those options are subject to the necessary shareholder approvals under the ASX Listing Rules and Australia's Corporations Act. Power estimates the approximately 8 per cent holding upon placement completion. The release does not provide a fully diluted share count covering both subscriber and lead-manager options.
Evolution Capital Pty Ltd acted as exclusive lead manager. Power's Nov. 3 release specifies a management fee of 2 per cent and a selling fee of 4 per cent of gross proceeds, plus goods and services tax.
The lead manager or its nominee would also receive 10 million listed PNNOA options, conditional on placement completion and shareholder approval. The A$5 million announced on Nov. 3 is therefore a gross fundraising amount, before the disclosed cash fees.
Expanded Drilling Will Test Depth
Power said in its Nov. 3 use-of-funds statement that expanded drilling would test Morro do Ferro's mineralised system at depth. Drilling is ongoing, with results to be released progressively as they become available.
A passive seismic survey is also underway. It uses instruments to measure ambient seismic noise and map subsurface layers, helping Power understand the geometry of mineralisation at depth.
Read more: Canamera Energy Metals starts 1,500-metre Schryburt Lake drill program
Power's next stated technical milestone is initial mineralogy outcomes in the fourth quarter of 2026. Those studies are helping shape the design and programs for metallurgical test work.
