Pinnacle Minerals, an ASX-listed mining company, has conducted a strategic review of its operations, leading to significant changes aimed at conserving capital.
The company has decided to streamline its exploration activities and reduce discretionary expenditure.
This move includes the surrender or ongoing process of surrendering several tenements in Western Australia (WA) and planning to offload others in South Australia (SA).
The tenements in WA that are being surrendered include the Holly (E70/5690 and E70/5676), Bobalong (E70/6440 and E70/6441), and Tambellup (E70/6440 and E70/6441) sites.
In addition, Pinnacle is looking to surrender the White Knight tenements (EL6789, EL6790, EL6791, EL6939) in SA.
In Canada, Pinnacle intends to surrender the Lac Rug and Lac Bigniba properties.
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By GlobalData
This rationalisation of exploration tenure is expected to reduce future capital commitments for the company.
Pinnacle chairman William Witham said: “The Board has taken appropriate actions to conserve capital by reducing discretionary expenditure, relinquishing non-core projects, whilst maintaining key projects and board expertise.
“Pinnacle continues to provide shareholders with exposure to high impact, future-facing commodities including Lithium (Adina East), Uranium and Rare Earths (Wirrulla) and Heavy Mineral Sands (Capel).”
Following the reduction of tenure, William Witham, the company’s chairman, has transitioned to the role of non-executive Chairperson.
Despite these divestments, Pinnacle continues to assess opportunities for acquiring complementary projects.
Pinnacle’s focus remains on delivering shareholder value through the systematic exploration and development of its portfolio, which includes battery and technology metals projects in Canada, Western Australia, and South Australia.
In December 2023, Pinnacle entered an agreement with E&D Fund to acquire a 75% stake in the Adina East lithium project in Quebec, Canada.
