Power Minerals (ASX:PNN) executed a joint venture agreement for the development of the Rincon project within its Salta lithium project in Argentina, according to a Monday filing with the Australian Securities Exchange.

Under the multi-party agreement, which includes Power Minerals and its subsidiaries PepinNini Minerals International and Power Minerals Sociedad Anonima, Li Energy Technology subsidiary Navigate Energy Technology, and Singaporean entity Repenergy Investment, the parties will collaborate to secure funding for the development of the Rincon project into a significant lithium-producing operation. Navigate Energy, the controlling shareholder and investor in the proposed Rincon JV, will provide a $4 million equity investment into the JV, the filing said.

The execution of the JV agreement comes after the completion of due diligence, and replaces the previous binding term sheet disclosed in May, according to the company.

Power Minerals shares rose more than 11% in midday trading.