Pinnacle Minerals Limited (PIM:ASX) ("Pinnacle" or the "Company"), a leading player in the mining and exploration sector, is thrilled to announce the formal execution of a sale agreement for a 75% stake in the Adina East Lithium Project (the "Project"). This significant acquisition marks a strategic expansion in the lithium-rich region of James Bay, Quebec.
Key Highlights of the Agreement:
- Strategic Location: The Project, spanning 72.7km2, is strategically positioned near the prolific Adina and Tilly Lithium Projects (Winsome Resources: WR1:ASX) and adjacent to the Trieste Lithium Project (Loyal Lithium: LLI:ASX).
- Partnership with Waratah: The Project partners include entities managed by Waratah Capital Advisors Ltd ("Waratah"), a renowned global asset manager with over CAD $4B in assets under management.
- Offtake Payment: A US $500,000 offtake pre-payment from Electrification and Decarbonization AIE LP (the E&D Fund), also managed by Waratah, will be received upon closing of the transaction.
- Exploration Progress: A successful exploration program was conducted in late October, with assay results eagerly anticipated in January 2024.
A Milestone in Pinnacle's Growth: The acquisition of the Adina East Lithium Project is a testament to Pinnacle's commitment to expanding its footprint in the lithium market, a critical component in the global shift towards electrification and sustainable energy solutions. The proximity to existing lithium projects underscores the potential for significant mineral discoveries.
Financial and Operational Benefits: The offtake pre-payment of US $500,000 by the E&D Fund will substantially bolster Pinnacle's balance sheet, providing the necessary capital to thoroughly explore the Project in 2024. This influx of funds is a crucial step in Pinnacle's journey towards becoming a major player in the lithium sector.
Future Exploration Plans: Pinnacle, in collaboration with IOS Geosciences, a Quebec-based team renowned for their expertise, has already initiated a ground reconnaissance program, sampling various pegmatite outcrops. The Company is in the process of finalizing its exploration plans for 2024 and will provide updates in the first quarter of the year.
Pinnacle Minerals Managing Director, Nic Matich, commented: “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. 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.”
About us:
Pinnacle Minerals Ltd (ASX: PIM) is an ASX listed technology minerals company focused on delivering shareholder value via the systematic exploration and development of its portfolio of battery and technology metals projects in Canada, Western Australia and South Australia. Pinnacle aims to deliver exploration success via systematic and geologically rigorous techniques. The Company’s focus is the “Adina East Project” in James Bay, Quebec which is proximal to the world class Adina Lithium Project (Winsome Resources: WR1.ASX) and adjacent to the Trieste Lithium Project (Loyal Lithium: LLI.ASX) and the Tilly Lithium Project (WR1.ASX). The Company’s Australian exploration assets are prospective for Rare Earth Elements, Mineral Sands and Kaolin.
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