Power Minerals Targets Brazil’s Rare Earth Heartland with High-Grade Morro do Ferro Acquisition

Key Highlights:

• Power Minerals shares traded around $0.13 on March 5
• Binding LOI signed to acquire Morro do Ferro REE Project in Brazi
• Multiple drill intercepts exceed 5% TREO, with ultra-high grades up to 24.13% TREO
• Project sits in Brazil’s Poços de Caldas rare earth hub
• $10.25 million placement secured to accelerate drilling and exploration
  
   

Australia’s critical minerals push has taken another step onto the global stage as Power Minerals Limited (ASX: PNN) moves to acquire a high-grade rare earth project in Brazil, potentially transforming the company’s growth trajectory.

The company announced it has entered a binding Letter of Intent to acquire the Morro do Ferro Rare Earth Elements project in Minas Gerais, one of Brazil’s most established mining regions.

At the time of writing, Power Minerals shares were trading around $0.13.

If the acquisition proceeds following due diligence, the project could place the company at the centre of a global race to secure alternative supplies of rare earths, materials critical for electric vehicles, wind turbines, defence technology and advanced electronics.

A rare earth deposit measured in percentages

In the rare earth industry, grade often determines whether a project attracts global attention or quietly fades into exploration history.

Most rare earth deposits report grades below 1,000 parts per million (ppm). At Morro do Ferro, drilling has delivered results that are measured not in parts per million but in percentages.

Historical drilling highlights include:

• 60.85 metres at 8.92% TREO from surface in hole MFSR-35
• 70.9 metres at 8.00% TREO from surface in hole MFSR-44
• 60.6 metres at 7.02% TREO from surface in hole MFSR-20
• 100.44 metres at 4.99% TREO from surface in hole MFSR-10
  
   

Individual samples have returned even stronger results, including 2 metres grading 24.13% TREO, a standout intercept in drillhole MFSR-44.

TREO refers to Total Rare Earth Oxides, the combined concentration of rare earth metals in an ore sample.

High grades matter because they can dramatically improve project economics by reducing the amount of rock that needs to be processed to produce the same volume of metals.

The magnet metals that matter

The project also contains significant concentrations of magnetic rare earth oxides (MREO) including neodymium and praseodymium.

These elements are essential ingredients in high-performance permanent magnets used in electric vehicles and wind turbines.

Power Minerals reported several high-grade MREO samples including:

• 2 metres at 3.48% MREO
• 2 metres at 3.36% MREO
  
   

Drillhole MFSR-35 delivered an average 1.47% MREO over 60.85 metres, which the company notes is higher than the total rare earth grades reported at many deposits globally.

A geological cousin of Mountain Pass

Another detail attracting attention is the type of mineral hosting the rare earths.

At Morro do Ferro, rare earth mineralisation is primarily hosted in bastnäsite, the same mineral found at the Mountain Pass Mine in the United States.

Mountain Pass is one of the largest rare earth mines outside China, producing key magnet metals for global markets.

For geologists and processing engineers, this similarity provides an important clue. Bastnäsite deposits are generally well understood, which can simplify future metallurgical processing compared with more complex rare earth mineral systems.

A rare advantage in mining permits

Beyond geology, Morro do Ferro also offers a legal advantage rarely seen in the mining sector.

The project sits on a Manifesto mining title, a type of permit in Brazil that gives the owner direct ownership of both the land and mineral rights.

This means exploration activities such as drilling can proceed without the usual approvals from third-party landholders.

According to Power Minerals managing director Mena Habib, the structure significantly simplifies development.

“We are excited to share a potential major advancement in our Brazilian project portfolio with this Binding Letter of Intent to acquire the Morro do Ferro Rare Earths Project,” Habib said.

“This represents an extremely high-grade, well-validated rare earths asset in an emerging global rare earths hub with previous drilling intersections in excess of 50,000ppm (5%) TREO.”

He added that the project’s mining permit provides direct land ownership and eliminates the need for third-party approvals for exploration programs.

“The acquisition would be an ideal complement to the Company’s other Brazilian asset, the Santa Anna Niobium and REE Project in Goiás state.”

A growing rare earth hub in Brazil

Morro do Ferro lies within the Poços de Caldas alkaline complex, one of the world’s largest rare earth geological systems.

The region has become increasingly important for global rare earth exploration, hosting projects from companies including Meteoric Resources and Viridis Mining & Minerals.

Viridis’ neighbouring project already hosts an indicated resource of 157 million tonnes at 2,947ppm TREO, highlighting the scale of mineralisation across the district.

While Morro do Ferro is at an earlier stage of development, its standout feature is grade. In several drill holes the mineralisation exceeds 5% TREO, far higher than many deposits currently under development worldwide.

Funding and next steps

Power Minerals has also secured $10.25 million in new funding through a placement to sophisticated and institutional investors.

The capital will support due diligence, further exploration and development of the project.

During the current due diligence period the company plans to carry out:

• Mapping and sampling
• Geophysical surveys to identify deeper targets
• Auger and aircore drilling
• Follow-up diamond drilling
  
   

The company’s technical team is already on site in Brazil evaluating the project.

A strategic metal for the energy transition

Rare earth elements are increasingly central to the global energy transition.

The International Energy Agency has highlighted that demand for magnet rare earths such as neodymium could grow significantly as electric vehicle and renewable energy markets expand.

China currently dominates rare earth production and processing, supplying more than 60 percent of global output, according to the United States Geological Survey.

As governments seek alternative supply chains, projects in jurisdictions like Brazil and Australia are attracting growing attention.

If Morro do Ferro delivers on its early promise, Power Minerals could find itself operating in one of the most strategically important mineral markets of the decade.

Source: Power Minerals ASX Announcement, 5 March 2026.