Azimut Exploration, Soquem to sell Pikwa to PMET

Executive Summary

• Azimut Exploration Inc. has entered into a sale and purchase agreement to sell its 50% interest in the Pikwa property to PMET Resources Inc.
• The transaction involves the issuance of 420,958 PMET shares to Azimut (and 420,958 to Soquem), valued at approximately $3.1 million based on PMET's 20-day VWAP.
• Azimut retains a 1.0% NSR royalty on the property and gains equity exposure to PMET, aligning with its strategy to focus on flagship assets while maintaining exposure to the James Bay lithium district.

Key Details

• Transaction Structure: Azimut sells its 50% interest in the Pikwa property (a 50/50 joint venture with Soquem Inc.) to PMET Resources Inc.
• Consideration: PMET will issue 420,958 common shares to Azimut and 420,958 common shares to Soquem.
• Valuation: Total consideration is $3.1 million, based on the 20-day volume-weighted average price (VWAP) of PMET's common shares on the Toronto Stock Exchange.
• Royalties: Azimut and Soquem each retain a 1.0% Net Smelter Return (NSR) royalty on the property.
• Resale Restrictions: For 24 months, 65% of the share consideration is subject to resale restrictions. One-third of this restricted portion is released if the 20-day VWAP exceeds $5, $10, and $12, respectively.
• Property Details: Pikwa consists of 509 claims covering 261 square kilometres in the Eeyou Istchee James Bay region of Quebec. It is adjacent to PMET's Shaakichiuwaanaan lithium project and lies on strike with the major lithium pegmatite trend.
• Exploration Context: Previous work by Azimut and Soquem confirmed spodumene in pegmatite outcrops and till samples, supporting the extension of the Shaakichiuwaanaan lithium trend onto Pikwa.
• Regulatory Status: The agreement is subject to customary closing conditions, including approval from the TSX.
• Strategic Rationale: The sale allows Azimut to focus on flagship assets while maintaining exposure to the emerging lithium district through equity ownership in PMET and retained royalties.

Notable Quotes

• "This transaction aligns with the company's objective to focus on its flagship assets while maintaining exposure to an emerging lithium district through its equity ownership in PMET and retained royalties." - Azimut Exploration Inc.