Pinnacle Minerals (ASX:PIM) have executed the formal sale agreement with the Electrification and Decarbonization AIE LP (E&D Fund), an entity managed by Waratah Capital Advisors Ltd (Waratah), acquiring 75% of the Adina East Lithium Project, located in the prolific James Bay region of Quebec, Canada.
Figure 1: James Bay Province Highlighting Adina East Project Location
Whilst obtaining the strategically located Project, Pinnacle Minerals will also receive a US $500,000 offtake pre-payment, upon imminent completion of the agreement, from the E&D Fund in consideration for offtake rights of up to 25% of any minerals extracted from the Project.
This will significantly strengthen the company’s balance sheet and will enable Pinnacle to employ sufficient capital to explore its portfolio throughout 2024.
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.
Winsome Resources’ recently announced the Adina Project’s initial maiden resource estimate is 59Mt at 1.12% Li2O, serving to highlight the lithium mineralisation potential of the area and provide Pinnacle with confidence in its exploration of the region.
Pinnacle has already made significant strides in its exploration endeavours of the Adina East Project, conducting a first pass, ground reconnaissance program, which obtained 14 pegmatite outcrops and boulder samples, several which contained Aluminous minerals.
The Company is still awaiting the results from this fieldwork, conducted in October, by geological consultants IOS.
The 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.
Satellite and radar analysis completed at Adina East 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.
The results from the initial fieldwork are expected to be available in early January 2024, with Pinnacle planning to report these to market as soon as possible.
Pinnacle Minerals Managing Director Nic Matich commented on the milestone.
“Signing of the formal sale agreement for 75% of the Adina East Lithium Project is a milestone for the Company and advances Pinnacle’s transition to a battery minerals explorer,” he said.
“Partnering with Waratah Capital at this stage of the Company’s journey is a strategic move and is expected to bolster Pinnacle’s growth.”
“The Company will enter 2024 with a strong balance sheet and an exciting suite of prospective exploration projects which together arguably provides shareholders, both current and future, with significant leverage to exploration success.”
PIM’s Australian Stock Exchange-listed share price is currently trading at $0.150 (11:30am UTC+ 8 hours).