Li-FT Power Signs Definitive Project Acquisition Agreement with Azimut
Azimut Monetizes Galinée Asset for Li-FT Equity as Major Partner Rio Tinto Retreats from James Bay Lithium
On December 24, 2025, Azimut Exploration Inc. signed a definitive agreement with Li-FT Power Ltd. to sell its 50% interest in the Galinée lithium property in Quebec. Azimut will receive 2,000,000 common shares of Li-FT and retain a 1.4% Net Smelter Return (NSR) royalty. Additionally, a deferred payment of $1,500,000 (cash or shares) is due upon the earlier of an economic study completion or 18 months. This follows the non-binding LOI announced on December 15, 2024, and coincides with Li-FT's broader plan to combine with Winsome Resources to consolidate the Adina-Galinée district.
The impact of this specific news is neutral to slightly positive for Azimut's balance sheet, but it is overshadowed by the preceding day's news. - Asset Monetization: Azimut successfully converts a joint-venture interest into a liquid equity position (2M shares of LIFT) and a royalty. At Li-FT's current financing price of $4.30 - $6.45, this represents $8.6M to $12.9M in paper value plus the $1.5M deferred payment. - Strategic De-risking: By shifting the development burden to Li-FT and Winsome, Azimut avoids the heavy capital expenditure required to move Galinée toward a Resource/PEA stage. - The Rio Tinto Shadow: The materiality of the Galinée deal is severely diminished by the news on December 23, 2025, where Rio Tinto indicated its intent to terminate its option on Azimut's other lithium properties (Wabamisk East, Corvet, and Kaanaayaa). A major miner exiting the district after significant exploration suggests the "extensive high-grade" visual results reported in 2025 may lack the scale or metallurgical consistency required for a Tier-1 project. - Equity Dilution vs. Value: While Azimut gains shares in Li-FT, Li-FT is currently undergoing a massive $35M+ financing and a complex merger with Winsome. Azimut's upside is now tied to Li-FT's execution and the overall lithium market sentiment, which has been volatile.
Azimut Exploration is a leading "project generator" in Quebec. Its flagship 100%-owned project is the Elmer Property, which hosts the Patwon Gold Deposit (311k oz Indicated, 514k oz Inferred). Currently, the company is aggressively exploring the Wabamisk Property for Antimony and Gold. The project features the Fortin Zone (antimony-gold) and the newly discovered Rosa Zone (gold).