Pinnacle Minerals: A crazy good deal to get a piece of James Bay lithium province
Pinnacle Minerals Executive Chairman Bill Witham on 6PR Bulls N' Bears Report
Listen to ASX-listed Pinnacle Minerals Executive Chairman Bill Witham talk to Matt Birney on the Bulls N’ Bears Report about Pinnacle’s exquisite entry into the hottest lithium province in the world – and the mega-fund that is already paying to get the off-take.
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Pinnacle Minerals is an exploration company with heavy minerals, kaolin and rare earths projects in WA and South Australia. Notably however the company recently pivoted into lithium, picking up 75 per cent of a lithium play in James Bay Canada, currently one of the hottest lithium jurisdictions on the planet. The deal terms for the new project are exquisite for Pinnacle and the market also seemed to like it, with the company’s stock rocketing 83 per cent on the news.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears brought to you today by Pinnacle Minerals
Matt Birney - ASX code: PIM
Matt Birney - I'm Matt Birney and I'm joined now by the Executive Chairman of Pinnacle Minerals, Bill Witham
Matt Birney - Hi Bill
Bill Witham - Yeah hi Matt
Matt Birney - Pinnacle Minerals has heavy minerals, kaolin and rare earths projects in WA and South Australia. Notably however the company recently pivoted into lithium, picking up 75 per cent of a lithium play in James Bay Canada, currently one of the hottest lithium jurisdictions on the planet. The deal terms for the new project are exquisite for Pinnacle and the market seemed to like it, with the company’s stock rocketing 83 per cent on the news.
Matt Birney - Okay Bill you bought 75 per cent of the Adina East lithium project in James Bay Canada. Who did you buy it from and what were the deal terms?
Bill Witham - Oh yeah we bought the project from Waratah Capital Advisors and some of their subsidiaries.
Bill Witham - The deal was they took 19.9 per cent of the company in stock and they also gave us a off-take agreement which gives us a cash injection of $775,000 into the company.
Matt Birney - That's remarkable that last bit. Okay so as we know James Bay is a crazy hot jurisdiction right now for lithium, are there any other decent lithium discoveries in the vicinity of this project?
Bill Witham - Yeah Matt, there's quite a few, listeners might know Winsome's Adina project which is just to the west of us. They've had some fantastic hits lately of over 100 meters over 1 per cent lithium as well and further along strike, we have Patriot, their Corvette project which is 109 million tonnes at 1.42 per cent lithium. A number of other projects which I can mention but certainly is one of the hotter areas and structures in James Bay.
Matt Birney - I know Winsome were getting grades up to almost 5 per cent at one stage. Tell me what makes you think there's lithium on this project? What are the early signs?
Bill Witham - Certainly the structures are right but it's about the pegmatites, Matt certainly a lot of mapped pegmatites and we think that they're in the right sort of zone for mineralization so we're very keen to get on the ground as soon as possible.
Matt Birney - Do you know roughly how many pegmatites are outcropping on it?
Bill Witham - We've identified quite a few, I couldn't say for sure but certainly a lot and we're going to have a helicopter up there quite shortly and people on the ground so we'll be able to confirm those numbers.
Matt Birney - Right and what's the plan now in terms of exploration, what are the early things that you'll do?
Bill Witham - Well we're using, we've obviously got a fair bit of geophysics and geophysical data, both satellite and magnetics but we'll be on the ground rock chipping before the end of the month and sampling those pegmatites.
Matt Birney - How much cash did you have in the bank at last report to fund exploration and how many shares we have on issue post this deal?
Bill Witham - Well with this deal we now have just a shy of $3 million in the bank plus our share structure is very tight, we only have 45 million shares on issue
Matt Birney - I think Waratah have about 3 or 4 billion dollars under management so they're no slouches I think it's remarkable they've given you a prepayment for an off-take agreement
Matt Birney - Bill Witham from Pinnacle Minerals
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears
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