Australian junior Pinnacle Minerals (ASX: PIM) has inked an agreement to acquire a 75% stake in the Adina East lithium project in the increasingly crowded and lithium-rich James Bay region of Quebec.
The deal with E&D Fund, a financial entity managed by Waratah Capital Advisors, grants Pinnacle US$500,000 ($666,450) as an offtake payment for rights to 25% of minerals extracted from the project.
“Partnering with Waratah Capital at this stage of the company’s journey is a strategic move and is expected to bolster Pinnacle’s growth,” Pinnacle Minerals Managing Director, Nic Matich, said in a statement.
The company, with a market capitalization of just A$3.77 million, said the funds will help it strengthen its balance sheet and boost project exploration in 2024.
In collaboration with IOS Geosciences, a Quebec-based team, Pinnacle has already initiated a ground reconnaissance program at Adina East, sampling various pegmatite outcrops.
The lithium project covers 72.7 sq. km and has a total of 147 claims. It’s adjacent to Loyal Lithium’s (ASX: LLI) Trieste project, where spodumene bearing dykes were identified less than 6 km from the boundary of the project. It’s also near Winsome Resources’ (ASX: WR1) Tilly project, where swarming pegmatites have been mapped and are interpreted to extend into the Adina East project.
Pinnacle shares traded at A15¢ apiece on Thursday, valuing the company at A$3.9 million. Its shares traded in a 52-week window of A7¢ and A32¢.
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