Pinnacle Secures Agreement to Acquire 75% Stake in Quebec Lithium Project

Pinnacle Minerals, a publicly-listed mining company on the ASX, has formalized a strategic agreement with E&D Fund, a financial entity managed by Waratah Capital Advisors, to acquire an influential 75% stake in the Adina East lithium project located in Quebec, Canada. With assets exceeding C$4 billion ($2.9 billion), E&D Fund brings significant financial backing to this venture.

Situated in the lithium-rich James Bay region of Quebec, the Adina East project spans an expansive 72.7 km² (7,274.4 hectares) and comprises a total of 147 claims. This project is distinguished by historically mapped pegmatites, geological formations associated with lithium deposits. Intriguingly, these pegmatites align with those found in Winsome Resources' Adina lithium project, covering approximately 24 km along strike in the same stratigraphic sequence and location.

The journey leading to Pinnacle's acquisition of a substantial 75% stake in the Adina East project commenced in October 2023 when the company entered into a conditional agreement. As a pivotal component of this transaction, Pinnacle committed to issuing over 9.08 million of its shares and 7.6 million options, each priced at A$0.15, to acquire fully paid shares in the company. This share purchase is scheduled to transpire within three years from the agreement's initiation.

Additionally, as part of the deal, Pinnacle extended offtake rights to the seller. This grants the seller a 25% share of all minerals extracted from the Adina East project, contingent upon a payment of $500,000. In October, Pinnacle embarked on a comprehensive first-pass, ground reconnaissance program, concentrating on 14 pegmatite outcrops and boulders within the project area. Several of these pegmatite formations reportedly contain aluminous minerals, and the assay results are eagerly anticipated in the coming month.

Nic Matich, the Managing Director of Pinnacle, underscored the significance of formalizing the sale agreement, highlighting its role as a pivotal milestone in the company's strategic transition into a battery minerals explorer. The partnership with Waratah Capital Advisors at this juncture is regarded as a strategic move poised to fortify Pinnacle's growth trajectory. Matich emphasized the anticipation of entering the year 2024 with a robust balance sheet and a portfolio comprising promising exploration projects. This positions Pinnacle to offer shareholders substantial leverage in anticipation of exploration success.

Pinnacle places strategic emphasis on the offtake payment, recognizing its potential to significantly fortify the company's balance sheet. The infusion of capital resulting from this transaction is anticipated to provide substantial funding for exploration endeavors throughout the forthcoming year. This injection of capital will further fuel Pinnacle's ambitious endeavors in the battery minerals sector. As the results of ongoing exploration initiatives materialize and the company advances its strategic agenda, Pinnacle stands poised to make noteworthy strides in the dynamic realm of lithium mining and exploration.