News Summary
The most recent news, dated December 14, 2025, is an announcement from Li-FT Power Ltd. detailing a complex corporate transaction. Li-FT Power plans to acquire Winsome Resources and simultaneously enter into a letter of intent to acquire a 75% interest in the Galinée property from Azimut Exploration Inc. and its partner SOQUEM Inc.
For its 50% interest in the Galinée property, Azimut will receive:
– 2,000,000 common shares of Li-FT Power.
– A 1.4% Net Smelter Return (NSR) royalty on the property.
– Deferred consideration of $1,500,000, payable in cash or shares at Li-FT’s discretion.
This transaction is part of a larger strategy by Li-FT to consolidate the Adina lithium project area in Quebec’s James Bay region. The closing of Azimut’s sale of Galinée is conditional upon the successful completion of the Li-FT and Winsome combination and a concurrent financing.
Material Impact
This transaction is materially positive for Azimut Exploration. It aligns perfectly with its project generator business model: discover, de-risk, and then monetize through sale, joint venture, or royalty creation.
– Non-Dilutive Value Crystallization: Azimut is monetizing an exploration asset without diluting its own shareholders. Instead of spending its own capital to advance Galinée, it receives shares in a new, larger, and well-funded entity specifically focused on developing the consolidated Adina-Galinée project.
– Retained Upside & Long-Term Value: By accepting shares in the new Li-FT, Azimut retains significant upside exposure to exploration success at Galinée and the broader Adina project. Furthermore, the creation of a 1.4% NSR provides a potential long-term, high-margin revenue stream at no further cost to Azimut.
– Strategic Focus: The sale allows management to concentrate its financial and technical resources on its portfolio of 100%-owned projects, particularly the advancing Wabamisk (Fortin Antimony-Gold and Rosa Gold zones) and Elmer (Patwon Gold deposit) projects.
– Consistent Strategy: Reviewing the historical news flow, this move is consistent with Azimut’s strategy of partnering with larger companies to fund exploration, as seen with Rio Tinto at Wabamisk East (Lithium) and KGHM at Kukamas (Nickel-PGE). This deal further validates their ability to generate valuable projects that attract corporate interest.
While the Galinée property was prospective, it was one of many assets in a very deep portfolio. This transaction smartly converts it into liquid shares, a valuable royalty, and cash, allowing Azimut to focus on its most advanced discoveries. The deal’s success is contingent on the main Li-FT/Winsome merger, which represents the primary risk to this specific value realization.
Catalysts
– Closing of the Galinée Transaction: Confirmation that the Li-FT and Winsome merger and associated financing have closed, which would trigger the finalization of the Galinée property sale.
– Assay Results from Rosa Gold Zone (Wabamisk): A press release from November 18, 2025, confirmed visible gold in 11 drill holes from a significantly expanded 3,633-metre program. The pending assay results from this program are the most significant near-term catalyst for the company.
– Updates on Wabamisk’s Fortin Sb-Au Zone: Continued drill results from the ongoing program to delineate the 1.8 km strike length of the antimony-gold system.
– Elmer Project Scoping Study: News on the progress or completion of the internal scoping study for the Patwon Gold deposit, which was announced on March 31, 2025.
– Partner-Funded Program Updates: Progress reports from the Rio Tinto-funded lithium exploration at Wabamisk East and the KGHM-funded nickel-PGE exploration at Kukamas.
Materiality Conclusion
The sale of the Galinée interest is a material and positive event for Azimut. It is a strategically sound move that realizes immediate value from a non-core asset, provides non-dilutive funding in the form of shares in a new entity, creates a valuable long-term royalty, and allows the company to focus its resources on its multiple advanced-stage projects. This enhances the company’s financial flexibility and de-risks its portfolio.
