Shares of the diversified mineral explorer, Power Minerals (ASX:PNN), witnessed a surge of as much as 21.2% to A$0.40, marking its most significant intraday percentage gain since May 16th.

The company’s stock reached its highest level since July 27th.

Power Minerals entered into a binding term sheet with Canada’s Summit Nanotech Corp, aimed at the funding and development of the Incahuasi Salar at Power Minerals' Salta lithium project in Argentina.

Summit stands to secure a 30% interest in the proposed joint venture via a strategic investment of up to $3 million in Power Minerals.

Additionally, Summit could earn a further 15% interest in the joint venture by taking part in a Definitive Feasibility Study at Incahuasi.

The two companies intend to execute a Definitive Option Agreement by October 31st.

More than 603,000 shares were traded, compared to the 30-day average of approximately 248,000 shares.

This year has seen Power Minerals' stock fall by 37.7%, as of the last close.

Power Minerals is a diversified mineral exploration company mainly operating in Argentina.