Power Minerals’ Funding Hinges on Shareholder Approval and Assay Outcomes

Capital Raise to Advance Santa Anna Project

Power Minerals Limited (ASX – PNN) has successfully secured A$2.6 million through a placement of over 51 million new shares priced at five cents each. This capital injection is set to fund ongoing due diligence and exploration activities at the company’s Santa Anna Niobium and Rare Earth Elements (REE) Carbonatite Project in Brazil, a key asset in its critical minerals portfolio.

The placement was well supported by sophisticated and professional investors, with Oakley Capital Partners acting as lead manager. Notably, the placement price reflects a discount of approximately 16.7% to the recent closing price, a common strategy to attract strong investor interest in such capital raises.

Focused Use of Funds

The funds will primarily be directed towards completing laboratory assays from a recently concluded 29-hole, 2,272-metre reverse circulation drilling program. This drilling campaign is a pivotal part of Power Minerals’ technical due diligence ahead of potentially exercising its exclusive option to acquire the Santa Anna project outright.

Further targeted sampling and assay work are planned to refine the understanding of mineralisation, particularly focusing on niobium and rare earth elements, which are increasingly critical in global technology and clean energy markets. Additionally, the capital will support general working capital needs and corporate costs, ensuring the company maintains operational momentum.

Shareholder Approval and Future Funding Plans

While a portion of the placement shares will be issued under existing placement capacities, the issuance of free attaching options and the remainder of the shares are subject to shareholder approval at a general meeting anticipated in September 2025. These options, exercisable at ten cents and expiring at the end of 2029, provide investors with potential upside linked to the company’s future share price performance.

Power Minerals also intends to seek approval to raise an additional A$1 million on similar terms, though no commitments have been secured for this amount yet. Managing Director Mena Habib has personally committed to participate in the placement, signaling confidence in the project’s prospects.

Strategic Implications

This capital raise underscores Power Minerals’ commitment to advancing the Santa Anna project, which could become a significant source of niobium and rare earth elements; both critical to emerging technologies and green energy solutions. The market will be watching closely for assay results and the outcome of the acquisition option exercise, which will be pivotal in determining the project’s future trajectory.