Pinnacle Minerals (ASX:PIM) inches closer towards completion of the Adina East Lithium Project acquisition, demonstrating its commitment to exploration across its Canadian Portfolio.
Figure 1: James Bay Province Highlighting Adina East Project Location
In October, the Company revealed its strategic acquisition agreement with a subsidiary of Waratah Capital Advisors Electrification and Decarbonisation AIE LP Fund (Waratah), to secure a 75 percent interest in the Adina East Lithium Project, situated in Quebec’s James Bay lithium district.
To ensure an optimal outcome for both parties, the agreement terms were established under Quebec law, which accrued additional time to the formal agreements. Given this, the involved parties have mutually agreed to extend the deadline until December 19, 2023, in order to facilitate the formal completion process.
Upon completion of the acquisition, Pinnacle Minerals is set to receive a $500,000 offtake payment from the E&D Fund, an investment fund overseen by Waratah.
Exploration at the Project
The Adina East Project comprises 147 claims spanning 72.7 square kilometres, situated alongside a interpreted extension of the Trieste greenstone belt and thriving lithium projects.
The Company is still awaiting the results from fieldwork conducted in October by geological consultants IOS, based in Quebec.
The primary aim of the fieldwork program was to identify potential LCT pegmatites and spodumene mineralisation by following up on historically mapped pegmatite outcrops and a number of lithium targets generated through detailed satellite and radar imagery analysis.
The satellite and radar analysis completed has identified multiple areas of interest with 60 discrete targets for follow-up field investigation.
Pinnacle has identified two noteworthy clusters of targets through radar imagery analysis, with the primary cluster situated in the central southern part of the claim area, aligning with the mapped pegmatites in Winsome Resources Tilly Project. Additionally, a secondary target has been identified on the eastern flank of the Project area.
Winsome Resources’ (ASX:WR1) recent announcement pertaining to their Adina Project’s initial maiden resource estimate of 59Mt at 1.12% Li2O has served to highlight the lithium mineralisation potential of the area.
The results from the initial fieldwork completed by Pinnacle are expected to be available in early January 2024.
Pinnacle Minerals Managing Director Nic Matich commented on the acquisition progress.
“The excellent working relationship between Pinnacle and our project partners at the Adina East Lithium Project is further strengthening,” he said.
“The agreement to extend the completion period to ensure a mutually beneficial outcome is an example of this.”
“The Pinnacle Board looks forward to finalising the transaction and is excited about receiving and announcing the first pass exploration results in the new year.”
PIM’s Australian Stock Exchange-listed share price is currently trading at $0.16 (11.00am UTC+ 8 hours).