AZIMUT AND SOQUEM TO PARTICIPATE IN LIFT POWER’S CONSOLIDATION OF THE GALINÉE-ADINA LITHIUM DISTRICT IN THE JAMES BAY REGION OF QUEBEC
Azimut Exploration Inc. has signed, together with SOQUEM Inc., a non-binding letter of intent (LOI) to restructure their 50/50 joint venture on the Galinee property in the Eeyou Istchee James Bay region of Quebec by selling an aggregate 75-per-cent interest in the property to Li-FT Power Ltd. This transaction is disclosed in conjunction with Li-FT’s announcement, on Dec. 15, 2025 (in Australia), of its proposed acquisition of Winsome Resources Ltd., the owner of the adjacent development-stage Adina property.
The consolidation of this district would allow Li-FT to advance a strengthened property package unconstrained by the Galinee-Adina boundary. The proposed transaction aligns with Azimut’s objective to focus on its flagship assets while maintaining exposure to emerging lithium districts through equity ownerships and retained royalties.
Under the terms of the LOI, Li-FT would acquire from Azimut a 50-per-cent interest in the property by issuing two million shares to Azimut and an additional 25-per-cent interest from SOQUEM by issuing one million shares to SOQUEM. Azimut would retain a 1.4-per-cent NSR royalty on the Galinee property while SOQUEM would retain a 25-per-cent undivided interest in the property via a joint venture with Li-FT. In addition, Azimut would be entitled to a $1.5-million deferred payment, payable in cash or, subject to conditions to be set out in the definitive agreements, in shares, at the earlier of the completion of a preliminary economic study with respect to the property or 18 months.
The Galinee property (649 claims, 335 square kilometres) is currently a 50/50 joint venture project between Azimut and SOQUEM, operated by Azimut. The 36-kilometre-long property lies about 50 kilometres north-northwest of the Renard diamond mine (Stornoway) and 60 kilometres south of the Trans-Taiga Road, an all-season regional highway. The property is located in an emerging lithium district and is adjacent to the Adina property, which Winsome advanced to a preliminary economic assessment and mineral resource estimate. Wide core drilling intervals of high-grade mineralization have been intercepted in the northern part of the Galinee property, including 1.62 per cent Li2O (lithium oxide) over 158.0 metres, 2.48 per cent Li2O over 72.7 m and 2.68 per cent Li2O over 54.6 m. Additional exploration targets have also been identified on the property (see press releases of June 19, 2024, and Oct. 10, 2024).
The parties are dealing at arm’s length. The LOI is non-binding and the terms and conditions described herein remain subject to negotiation and execution of definitive agreements. There is no assurance that a definitive agreement will be entered into or that any transaction will be completed. The execution of a definitive agreement remains subject to approval by Azimut and SOQUEM. The closing of the transaction will be subject to customary closing conditions for a transaction of this nature, including approval from the TSX-V.
Dr. Jean-Marc Lulin (PGeo), Azimut’s president and chief executive officer, prepared this press release and approved the scientific and technical information disclosed herein, including the previously reported results presented by Azimut in the figures supporting this press release. He is acting as the company’s qualified person within the meaning of National Instrument 43-101 — Standards of Disclosure for Mineral Projects.
About Li-FT Power Ltd.
Li-FT is a mineral exploration company engaged in the acquisition, exploration and development of lithium pegmatite projects located in Canada. The company’s flagship project is the Yellowknife lithium project located in Northwest Territories, Canada. Li-FT also holds three early stage exploration properties in Quebec, Canada, with excellent potential for the discovery of buried lithium pegmatites, as well as the Cali project in Northwest Territories within the Little Nahanni pegmatite group.
About Azimut Exploration Inc.
Azimut is a leading mineral exploration company with a solid reputation for target generation and partnership development. The company holds the largest mineral exploration portfolio in Quebec, controlling strategic land positions for gold, copper, nickel and lithium. Azimut is concurrently advancing several high-potential projects:
* Wabamisk (100 per cent Azimut) — Fortin zone (antimony-gold): results for seven holes are pending and will be reported as soon as they are received; Rosa zone (gold): initial phase of drilling completed, assays pending;
* Elmer (100 per cent Azimut) — Patwon gold deposit at the resource stage (311,200 ounces indicated and 513,900 oz inferred); internal scoping study in progress; field assessment of the recently acquired K2 claim block;
* Wabamisk East (Rio Tinto option) — Lithos North and South (lithium): comprehensive field evaluation under way to prepare for drilling phase;
* Kukamas (KGHM option) — Perseus zone (nickel-copper-platinum group element): drilling phase completed; assay results are pending and will be reported as soon as they are received.
Azimut uses a pioneering approach to big data analytics (the proprietary AZtechMine expert system), enhanced by extensive exploration know-how. The company’s competitive edge is based on systematic regional-scale data analysis. Azimut maintains rigorous financial discipline and a strong balance sheet.
Azimut has two strategic investors among its shareholders, Agnico Eagle Mines Ltd. and Centerra Gold Inc., which hold approximately 11 per cent and 9.9 per cent, respectively, of the company’s issued and outstanding shares.
