Pinnacle Minerals Ltd (ASX: PIM) has entered into a conditional agreement with a subsidiary of Waratah’s Electrification and Decarbonization AIE LP fund, to acquire a 75% interest in the Adina East Lithium Project in the prolific lithium region of James Bay, Quebec, Canada.
Pinnacle Minerals managing director, Nic Matich, commented: “This acquisition not only provides an exceptional lithium exploration opportunity for Pinnacle Minerals but brings with it a partnership with Waratah and Lithium Royalty Corp. This partnership is anticipated to allow Pinnacle to expand and grow the company’s critical mineral portfolio further. Preselling a 25% offtake for US$500,000 shows the “offtakers” confidence in the project and bolsters our cash reserves in a climate where the dilutive effect of raising capital is destructive to junior explorers. Lithium Royalty Corp. has royalties in 32 projects globally highlighting its global expertise in the sector.”
The project claims cover 72.7km2, bordering an interpreted extension of the Trieste Greenstone Belt and is located 24km from Winsome Resources’ (ASX.WR1) Adina Project which recorded 1.34% Li2O over 107.6m1 and grades up to up to 4.89% Li2O2. The Project is also adjacent to the Loyal Lithium (LLI.ASX) Trieste Project and the Winsome Resources (ASX:WR1) Tilly Project.
As part of the acquisition, Pinnacle has agreed to grant the vendor the right to purchase 25% of all minerals extracted from the project in consideration for a US$500,000 offtake prepayment. Thie payment will fund the transaction and initial exploration of the project which is anticipated to commence in October 2023. The net result of the transaction is a “pro forma” increase to the balance sheet of circa A$650,000.
Pinnacle has partnered with Waratah’s E&D Fund on this transaction, and it is anticipated that the partnership will strengthen and help expand Pinnacle’s footprint in not only Quebec but other jurisdictions prospective for lithium mineralization.
To read more about this, please visit www.pinnacleminerals.com.au
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