News Summary
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.
Material Impact
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.
Catalysts
– Assay Results from Wabamisk East: Rio Tinto’s exit came before final assays for the 2025 drill program (WL25-01 to 05) were released. These results will reveal if the “20-40% spodumene” visuals translate to economic grades.
– Wabamisk Gold/Antimony Assays: Results from the 26-hole maiden program at the Rosa Zone (Gold) and the continued delineation of the Fortin Zone (Antimony-Gold). Antimony is a critical mineral with high prices ($60k/t), making this a key non-lithium catalyst.
– Li-FT / Winsome Merger Completion: Azimut’s newly acquired shares will depend on the successful integration of these two companies.
– Centerra Gold/Agnico Eagle Involvement: Watch if these strategic investors increase their stakes or if they follow Rio Tinto’s lead in cooling on the James Bay region.
Materiality Conclusion
The Galinée definitive agreement is a routine closing of a previously announced transaction. While it provides Azimut with capital and exposure to a consolidated lithium district, it does not offset the negative sentiment generated by Rio Tinto’s departure from three other major lithium blocks. Azimut is effectively pivoting back to its gold and antimony roots as its primary lithium partnership has dissolved.
