PNN to list on the US OTC markets in response to “strong interest from US based institutions”

Our US/Brazilian rare earths Investment Power Minerals (ASX: PNN) just kicked off the process for a US listing.

PNN is looking to list on the US OTC market…

… with a view of getting listed on the NASDAQ at a later date…

PNN has two assets:

• The Gamma Rare Earth Project in California, USA which PNN is currently in the process of acquiring - here PNN’s theory is that its project could host heavy rare earths (which is the harder to find, more valuable type of rare earths).
• The Santa Anna Niobium-Rare Earth Project in Brazil where PNN is hoping to make a discovery similar to one of our other Investment St George Mining (which has been one of our best performers this year).

Read more on both the assets in our initiation note here: Our New Investment: Power Minerals Ltd (ASX: PNN)

PNN said its US listing would be in response to “strong interest from U.S.-based institutions and investors”.

(Source)

That interest could be a result of the new project PNN is acquiring in California which has shown signs of having high HEAVY rare earths grades.

These types of rare earths are rarer, more valuable and have uses in high temperature magnets and defence.

(Source)

Rare earths (especially heavy rare earths) are becoming more and more of interest to the US especially with all of the escalations between China and the US.

Most heavy rare earths are produced from ionic clay deposits based in China… (source) so a heavy rare earth dominant discovery in the US could be extremely valuable.

(Source)(Source)(Source)

We think the move by PNN to list in the US is a good move because we have seen it work for our other US critical minerals Investments.

Our two other Investments RML and LKY both have US OTC listings where we have seen volumes well above what we are used to seeing on that exchange.

The increased volumes also coincided with rallies in the share prices of both those companies.

Here is how the two performed a few months back after they initially listed on the OTC:

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

What’s next for PNN?

🔄 Complete the acquisition of its US rare earths project

Next we want to see PNN acquire its US rare earths project and start target generation works.

PNN will need to go to a shareholder vote to approve the deal so the next thing we should see is a notice of meeting to call the meeting where the vote will take place.

Here are the milestones we want to see PNN start as soon as the acquisition is completed:

Objective 1: Target Generation on US rare earths project

We want to see PNN sample, map and run geophysics on its US asset to identify priority drill targets.

Milestones:

🔲 Mapping and sampling (soil and rock chips)

🔲 Geophysics

🔲 Drill targets confirmed

🔄Drilling at Brazilian rare earths project

PNN is also drilling its Brazilian rare earths project right now.

(Source)

Here, we want to see PNN drill out and define a maiden JORC resource estimate in Brazil to enable comparison to peers.

Here are the milestones we are tracking on PNN’s Brazilian rare earths project:

Milestones:

🔲 Geophysics/Geochemistry work

🔄 Drilling starts

🔄 Drilling results

🔲 Maiden JORC resource estimate