Power Minerals Limited (ASX: PNN) has signed an option agreement to acquire the Gamma Heavy Rare Earths (HREE) Project in San Bernardino County, California, situated south-west of MP Materials’ Mountain Pass Mine. The move adds a potential mineralised carbonatite to Power’s critical-minerals portfolio and is supported by a A$4.1 million placement to sophisticated and professional investors, including Tribeca Investment Partners and S3 Consortium.
Historical (non-JORC 2012) work at Gamma reports rare earth element grades up to 20,257 parts per million total rare earth oxides (TREO) with a high proportion of heavy rare earth oxides, alongside uranium rock chips up to 1.786% U₃O₈ and a diamond core interval including 6.25 metres at 1.30% U₃O₈ from 24.08 metres. Power will re-assay historic core and undertake systematic sampling, geophysics and expedited drilling, noting the company’s caution that historical data lack verifiable quality assurance/quality control and are indicative only.
Placement shares are priced at A$0.10, with one PNNOA option (A$0.10 exercise, expiring 29 December 2029) issued for every two shares, subject to shareholder approval. Tranche 1 of A$3.4 million is expected to settle around 15 October 2025; Tranche 2 of A$700,000 is anticipated within about 60 days.
“We are very excited about the potential of the Gamma Project to add to and complement, our suite of critical minerals projects. Gamma represents a high-grade, early-stage exploration asset, which we see has the potential to be rapidly advanced with the application of targeted, modern exploration activities.”
Power says Gamma could complement Mountain Pass, which currently produces light rare earths only.