Power Minerals Limited announced it has entered into a non-binding Memorandum of Understanding (MoU) with Xiamen Xiangyu New Energy Co., Ltd. (Xiamen Xiangyu). The MoU allows both parties to conduct due diligence investigations and enter negotiations with a view to executing a binding off-take, funding and logistics agreement for the Salta Lithium-Brine Project, in the Salta province in the lithium triangle of north-west Argentina (Project). Under the terms of the MoU, Power and Xiamen Xiangyu will conduct due diligence and enter into discussions in respect of a binding agreement, under which Xiamen Xiangyu may; Enter into off-take arrangements in respect of future brine and/or lithium concentrate from the Project.

Xiamen Xiangyu's end-user for its lithium supply agreements is global vehicle manufacturer Volkswagen; Procure funding for the Project to support development milestones; Provide plans for the extraction and sale of the Project's brine and/or lithium concentrate; Take advantage of its market channels in China to achieve the extraction and sale of brine and/or the production and sale of lithium concentrate, and assist in the rapid return of capital in the initial phase of the Project; and Provide export and import solutions for finished products resulting from the Project.