News Summary
The most recent news release (December 23, 2025) provides a dual-edged update on the Wabamisk East lithium property. Azimut reported visual results from a 5-hole, 615-meter diamond drilling program. Highlights include hole WL25-02, which intersected coarse-grained spodumene pegmatite with estimated spodumene content of 35% to 40% over various intervals. However, the critical component of the release is the announcement that Rio Tinto Exploration Canada Inc. (RTEC) has indicated its intent to terminate the Option to Joint Venture Agreement on the Corvet, Kaanaayaa, and Wabamisk East properties effective December 31, 2025.
Material Impact
The impact of this news is material and negative. While Azimut attempts to highlight the “high-grade” visual nature of the spodumene discovery, the exit of a Tier-1 partner like Rio Tinto is a significant vote of non-confidence in the project’s ability to meet the internal economic hurdles of a major mining company.
– Loss of Funding: Under the previous agreement, Rio Tinto was committed to spending up to $25 million in Phase 1 to earn 50%. By terminating, Azimut loses a massive capital cushion and must now fund 100% of the “aggressive” drilling programs it previously proposed to Rio.
– Operational Shift: Azimut was the operator under the initial phase, but the plan was for Rio to take over operations in Phase 2. Azimut now retains 100% ownership but bears 100% of the risk.
– Market Perception: Majors typically do not walk away from Tier-1 discoveries. The termination suggests that despite high-grade surface samples (up to 7.42% Li2O), the scale, continuity, or metallurgical characteristics may not have met Rio Tinto’s requirements.
Catalysts
– Assay Results: Results from the 5 holes (WL25-01 to 05) are pending. These will confirm if the visual spodumene translates to material lithium grades.
– New Partner Search: Azimut will likely seek a new partner to share the exploration costs for the Lithium properties.
– Galinée Transaction Closing: Completion of the definitive agreement with LiFT Power for the 50% interest in Galinée, which would provide 2 million LiFT shares and $1.5 million in deferred cash.
– Wabamisk Gold/Antimony Assays: Results from the Rosa Zone (11 holes with visible gold) and Fortin Zone (7 holes pending) will determine if the company shifts its primary focus back to gold/antimony following the lithium setback.
Materiality Conclusion
The news is material. While the company regains 100% of a “discovery,” the exit of Rio Tinto after only a year of the revised option agreement suggests the project may lack the “size” a major requires. The financial burden of exploring a James Bay lithium project is immense, and Azimut’s working capital will be depleted much faster without Rio’s $25 million commitment.
