European Lithium Takes 8% Stake in Power Minerals
The A$5 million investment in the Brazilian rare earths explorer is priced at 14c per share, matching Power's previous close.
Updated on Nov. 3, 2026 in Investing
European Lithium has agreed to acquire an 8% stake in Power Minerals for A$5 million, with shares priced at 14c each, in line with Power's prior closing price. The deal also gives Critical Metals a route into South America through Power's stake.
Why it matters
The investment links a lithium explorer with a rare earths project in Brazil, a sector drawing growing attention from investors seeking non-Chinese supply. Critical Metals' entry into South America could open new funding options for Power's Morro do Ferro project.
The deal is priced at 14c per share, the same as Power's previous closing level, which gives Power Minerals a market capitalisation of about $62 million at its trading price of 14.2c. European Lithium's cash balance is $296.5 million and its final trading capitalisation was $680 million, but the source does not indicate how the stake will be valued after the transaction.
The players
European Lithium
European Lithium is the ASX-listed company taking the 8% stake in Power Minerals, and it was suspended from the exchange in late October after its scheme of arrangement was approved by the courts.
Critical Metals
Critical Metals is a rare earths and critical minerals company with a market capitalisation above US$1 billion and projects in Greenland, Austria and Kenya.
The details
Under the agreement, European Lithium will put A$5 million into Power Minerals at 14c per share. Power used earlier funding to complete the first $6 million instalment of the $18.5 million consideration for the Morro do Ferro project in Brazil's Pocos de Caldas complex.
Timeline
Earlier in 2026, Power Minerals raised A$10.2 million at 10.5c per share.
In June 2026, Power completed a $1.7 million strategic placement at 14.5c.
In late October 2026, European Lithium was suspended from the ASX after courts approved its scheme of arrangement.
On November 3, 2026, the Power Minerals stake was announced.
Market Dynamics
The transaction fits a pattern of ASX-listed critical minerals companies taking minority stakes in one another's projects rather than relying solely on direct equity raises. Critical Metals' South American entry through Power suggests that rare earths developers with cash on hand are seeking exposure to earlier-stage projects outside their existing jurisdictions.
Shareholders in Power Minerals and European Lithium will see their holdings affected by the cross-investment, with European Lithium's stake priced at 14c per share. Retail investors weighing exposure to rare earths explorers should review the share price basis and drilling results before deciding how to allocate capital.
The takeaway
Cross-holdings between critical minerals companies can provide funding and access to projects in new regions. Investors should weigh the price basis of such deals against the stage and grade of the underlying project.
Further reading
For more on how companies like these are funded, see our Investing coverage.
