Li-FT Power Reports C$12.6 Million Loss Amid $20 Million Financing and Project Expansion

Strategic Acquisitions Boost Lithium Footprint in Quebec

Li-FT Power Ltd. (ASX:LFT) has significantly expanded its Canadian lithium portfolio by completing the acquisition of Winsome Resources, consolidating the Adina and Galinée projects into a unified Adina-Galinée lithium district in Quebec's Eeyou Istchee James Bay region. This integration positions Li-FT as a leading hard-rock lithium developer in Canada, with a 75% interest and operational control over the Galinée Property under a joint venture with SOQUEM Inc.

The acquisition, finalized in May 2026, involved issuing over 27 million shares to Winsome shareholders and brought together multiple spodumene-bearing pegmatite bodies showing lithium grades mostly between 1.0% and 1.5% Li₂O. Drilling results reveal thick, continuous mineralization open along strike and at depth, supporting ongoing resource delineation and environmental studies.

Renard Mine Site Option Adds Processing Infrastructure Potential

In a move that could accelerate project development, Li-FT Power secured an exclusive two-year call option to acquire the Renard diamond mine site in Quebec, including its fully permitted processing facility with a 2.2 million tonnes per annum capacity. The option requires a C$12 million fee paid into trust, with additional care and maintenance costs estimated at C$18 million annually during the option period.

The Renard Option is contingent on court and regulatory approvals, including a release condition from Quebec's Ministry of Natural Resources and Forests, due by October 2026. While the company is evaluating the feasibility of repurposing Renard for lithium processing, completion remains subject to multiple conditions and due diligence. The option aligns with Li-FT's strategy to leverage existing infrastructure for its Adina-Galinée project, potentially reducing capital intensity and development timelines.

Yellowknife Lithium Project Shows Resource Growth and Drilling Success

Li-FT’s Yellowknife Lithium Project in the Northwest Territories continues to deliver encouraging results. The initial National Instrument 43-101 mineral resource estimate, released in late 2024, reported 50.4 million tonnes grading 1.00% Li₂O inferred, ranking among Canada’s largest hard-rock lithium resources.

Drilling campaigns through 2025 and into the first half of 2026, including a winter program of 20 holes totaling over 5,300 metres, confirmed spodumene-bearing pegmatite continuity with intercepts such as 26 metres at 1.29% Li₂O and 17 metres at 1.65% Li₂O. The company has also initiated early-stage studies for a lithium carbonate conversion facility as part of its integrated downstream strategy, though no development decisions have been made.

Financials Reflect Growth and Increased Operating Costs

Li-FT reported a net loss of C$12.6 million for the six months ended June 30, 2026, a marked increase from C$1.4 million the prior year. Operating expenses rose sharply to C$11.1 million, driven primarily by a surge in share-based compensation (up by C$5.9 million), management fees, consulting salaries, and investor relations activities linked to the Winsome acquisition and expanded corporate footprint.

Cash used in operating activities increased to C$6.3 million, while investing activities consumed C$22.3 million, including the Renard option fee. However, a successful C$20 million bought deal financing completed in August 2026, led by Canaccord Genuity, has strengthened the company’s liquidity to nearly C$19 million, earmarked for Renard care and maintenance and general working capital needs.

Exploration Portfolio Remains Diverse with Multiple Projects

Beyond its flagship projects, Li-FT maintains a broad exploration portfolio across Quebec and the Northwest Territories, including the DeStaffany, LDG-Mackay, Cali, Rupert, Pontax, Moyenne, Nottaway, Cancet, Tilly, and Sirmac-Clapier lithium projects. While some properties await further exploration, ongoing geological mapping, sampling, and environmental baseline studies continue to refine targets and prepare for future drilling campaigns.

The company’s strategic focus remains on advancing resource delineation, technical and environmental studies, and community engagement. A preliminary economic assessment (PEA) for the Yellowknife Lithium Project is anticipated in the first quarter of 2027, potentially providing a clearer picture of project economics and development pathways.

Risks and Uncertainties Surround Expansion Plans

Li-FT acknowledges the speculative nature of mineral exploration and the inherent risks in its recent acquisitions and option agreements. The Renard option, while promising, carries execution risks including regulatory approvals, financing requirements for care and maintenance, and potential environmental liabilities. The company’s ability to integrate new assets and realise synergies remains unproven and subject to market and operational challenges.

Furthermore, the company depends on continued access to capital markets to fund exploration and development activities. Failure to secure adequate financing could curtail operations. Commodity price volatility and permitting hurdles add layers of uncertainty to the company's growth trajectory.

As Li-FT navigates this critical phase of consolidation and development, investors will be watching closely for drilling updates, progress on the Renard option exercise, and the forthcoming Yellowknife PEA to gauge the company’s potential to transition from exploration to production.