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, in Quebec, Canada.
The deal with E&D Fund, a financial entity managed by Waratah Capital Advisors, grants Pinnacle $500,000 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 the statement.
The company, with a market capitalization of just A$3.77 million ($2.6m), 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 72.7km² (7,274.4 ha.) 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 6km from the boundary of Project2 and is also by Winsome Resources’ Tilly project, where swarming pegmatites have been mapped and are interpreted to extend into the Adina East Project.
