Diversified minerals company Power Minerals Limited (ASX: PNN) (Power or the Company) is pleased to announce that it has secured a strategic investment of $2.6 million from lithium sector investor, Fuyang Mingjin New Energy Development Co., Ltd (Mingjin).
- Lithium sector investor, Fuyang Mingjin New Energy Development Co., Ltd (Mingjin) to make a strategic $2.6m investment into Power Minerals
- Investment to accelerate the development of Argentinian
- lithium assets
- Mingjin will subscribe for 6.5m Power shares at $0.40 per share via a Placement to raise $2.6m before costs
- Mingjin has existing cornerstone equity investments in ASX- listed lithium companies, Octava Minerals Ltd (ASX: OCT) and Patagonia Lithium Ltd (ASX: PL3)
This strategic investment will allow Power to accelerate the development of its lithium projects at the Salta Lithium Project in the lithium triangle of north-west Argentina.
Power and Mingjin have entered into a binding Subscription Agreement under which Mingjin will invest $2.6 million (before costs) into Power via a Placement of 6.5 million Power Ordinary Shares at an issue price of $0.40 per share (Placement).
On completion of the Placement, Mingjin will have an 8.9% holding in the issued equity capital of Power.
Mingjin is an institutional lithium sector investor, with existing cornerstone equity investments in fellow ASX-listed companies, Octava Minerals Limited (ASX: OCT) and Patagonia Lithium Limited (ASX: PL3).
“We are delighted to welcome experienced ASX-investor Fuyang Mingjin New Energy Development Co., Ltd as a strategic, cornerstone investor in Power Minerals. They share a common goal with the Company, to drive the development of the Salta Lithium Project to produce a quality lithium product for the massive global
EV battery market, and deliver significant value for shareholders. We envisage Mingjin’s investment as being the starting point of a long and mutually beneficial relationship between Power and Mingjin.”
Power Minerals Managing Director, Mena Habib
The Placement consists of the issue of 6,500,00 ordinary fully paid shares (Shares) at an issue price of $0.40 per Share, raising $2.6 million (before costs). The Placement will be completed in one tranche under the Company’s Listing Rule 7.1 and 7.1A capacity. The Placement is subject to Foreign Investment Review Board (FIRB) approval and must be completed before 30 August 2023. It is noted Mingjin is a successful ASX investor and currently holds ~15% of ASX-listed Octava Minerals Limited (ASX-OCT) and ~17% of ASX-listed Patagonia Lithium Ltd (ASX-PL3)
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