Power Minerals Limited announced it has extended its Memorandum of Understanding with Xiamen Xiangyu New Energy Co. Ltd. (Xiamen Xiangyu). Power and Xiamen Xiangyu entered into the MoU in July 2022 allowing both parties to conduct due diligence with a view to executing binding off-take, funding, logistics and offtake agreements for Power's Salta Lithium Project, in the Salta province in the lithium triangle of north-west Argentina.

The initial timeframe set-down under the MoU for the parties to execute a binding agreement was 180 days from date of execution of the MoU. Power advises that the due diligence has progressed extremely well with both parties working collaboratively throughout the process. Xiamen Xiangyu recently completed a successful 40 litre bulk-sample test of brines from each of the Incahuasi, Rincon and Pocitos salares at the Salta Project, which confirmed the brine quality and suitability from each salar.

Xiamen Xiangyu will now conduct a site visit to the Salta Project as a next step in the due diligence process. The final component of due diligence is the successful delivery of the Preliminary Economic Assessment currently underway at the Rincon salar. The PEA is expected to be completed in the first half of calendar 2023, and Power and Xiamen Xiangyu have agreed to extend the MoU until the completion of the PEA.

Subject to the successful completion and outcomes of the PEA, the parties then plan to move to execute a binding agreement in respect of funding, logistics and offtake for the Salta Project.