Imagine Lithium Outlines Exploration Program for Jackpot Project and Closing of Convertible Note Financing
Rhea-AI Summary
Imagine Lithium (OTCQB: ARXRF, TSXV: ILI) outlined a Fall 2026 exploration program for its 27,597 ha Jackpot Project in the Georgia Lake Pegmatite Field and confirmed closing of a $3.0 million secured convertible note financing. Current NI 43-101 mineral resources at Jackpot total 3.1 Mt indicated at 0.85% Li2O and 5.3 Mt inferred at 0.91% Li2O. Six key target zones, including Jackpot South, Blay Lake, Newkirk SW, Cosgrave North, Jackpot West and Jackpot Southwest, have been prioritized based on lithium-in-soil anomalies and spodumene-bearing samples.
The Fall 2026 work will expand resources at the Casino Royale deposit, drill the Ruth Pegmatite, advance several blind targets for a Winter 2027 drill program, and progress metallurgical, engineering, environmental baseline and permitting work. The 7.0% secured Convertible Notes mature in five years, are convertible at $0.05 per share in year one and $0.10 thereafter, and are secured by a first-ranking general security interest over all company assets. The investor receives a right of first refusal on any lithium offtake, and a finder was compensated with 3,600,000 shares, subject to a 12‑month plus one day resale restriction. The financing has conditional TSXV approval and remains subject to final approval.
Positive
- $3.0 million secured convertible note financing closed to fund exploration
- 7.0% coupon, 5-year maturity provides medium-term, fixed-cost capital
- Conversion at $0.05–$0.10 per share offers potential equity funding path
- Jackpot Project hosts 3.1 Mt indicated and 5.3 Mt inferred lithium resources
- Fall 2026 and Winter 2027 programs aim to expand Casino Royale and Ruth resources
- Metallurgical, engineering and environmental baseline work initiated for future development
Negative
- Convertible Notes are secured by a first-ranking general security interest over all assets
- Early repayment carries a 10% premium plus accrued interest cost
- Potential dilution from note conversion at $0.05–$0.10 per share and 3.6M finder shares
- Financing only has conditional TSXV approval and still needs final approval
- Investor gains right of first refusal on lithium offtake, limiting future offtake flexibility
AI-generated analysis. How Rhea-AI works. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - August 26, 2026) - IMAGINE LITHIUM INC. (TSXV: ILI) (OTCQB: ARXRF) (the "Company" or "Imagine") is pleased to provide an exploration update on their 27,597 ha Jackpot Project. Imagine Lithium's Jackpot project comprises the Ruth Pegmatite claims and the Jackpot Deposit claims in the Georgia Lake Pegmatite Field, approximately 140 km northeast of Thunder Bay, Ontario (Figure 1). Total resources on the land package include 3.1 Mt indicated at
Figure 1: Jackpot Project located next to Trans-Canada Highway, power, port, railroad, and workforce.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2962/311602_11e3ec8734b01984_001full.jpg
A compilation of all project data collected from 2022 to 2025 indicates six key target zones across the property (Figure 2). The six target areas are selected where lithium in soil anomalies coincide with spodumene bearing pegmatite samples that are from bedrock or glacial float. The key target zones on the project are listed in order of exploration priority based on proximity to the Jackpot deposit:
- Jackpot South Zone - defined by soil anomaly and three boulder samples that returned
2.91% Li2O,2.73% Li2O and2.52% Li2O; - Blay Lake Zone - defined by soil anomaly, two bedrock samples and one boulder sample that returned
4.31% Li2O,2.48% Li2O and1.42% Li2O, respectively; - Newkirk SW Zone - defined by a cluster of spodumene pegmatite boulders that returned
3.59% Li2O,3.49% Li2O,2.63% Li2O and1.74% Li2O; - Cosgrave North Zone - defined by northern and southern dykes where two surface grab samples returned
1.84% Li2O and3.92% Li2O, respectively; - Jackpot West - north-south trending spodumene bearing pegmatite dyke up to 5 m wide and 40 m long in outcrop that returned
1.98% Li2O and0.98% Li2O. A significant lithium in soils anomaly is also present north of this dyke; - Jackpot Southwest Zone - defined by a large lithium in soil anomaly and two spodumene bearing boulders that returned
4.16% Li2O and2.69% Li2O (Figure 2). This area has five barren pegmatite dykes that were identified by Pye (1965).
Figure 2: Exploration Potential of the Jackpot Project showing newly discovered zones with coincident lithium in soil anomalies.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2962/311602_11e3ec8734b01984_002full.jpg
The Fall 2026 exploration program will focus on expanding resources at the Casino Royale deposit and conducting exploration drilling at the Ruth Pegmatite to update Imagine Lithium's mineral resource inventory.
In addition, several high-priority blind targets, including the Jackpot South and Blay Lake areas, will be advanced in preparation for a Winter 2027 drill program. Drilling will target large lithium-in-soil anomalies that coincide with spodumene-bearing pegmatites identified in bedrock at Blay Lake and in glacial boulders at Jackpot South.
The Cosgrave North Zone will also be advanced through bedrock stripping and diamond drilling to evaluate whether the dykes represent an upper, tantalum-bearing vein system overlying stacked albite-spodumene pegmatite dykes similar to those identified at the Jackpot and Casino Royale deposits.
The ongoing exploration program is designed to expand known mineralization and test newly identified targets:
- Expansion drilling at the Casino Royale deposit to grow existing resources;
- Drill test the Pegmatite 500 Extension that was discovered north of the Jackpot-Casino open pit trend during the 2025 field season;
- Drill test the Ruth Pegmatite that was stripped and channel sampled in the fall of 2025;
- Complete bedrock stripping in the Newkirk SW Zone to determine the bedrock source of spodumene pegmatite boulders in the area;
- Complete geological mapping in the Jackpot West and Jackpot Southwest Zones to delineate existing pegmatite dykes and make new discoveries;
- Prepare the Jackpot South, Blay Lake zone and Cosgrave North Zones for diamond drilling in the winter of 2027;
- Advance metallurgical optimization and preliminary engineering studies; and
- Initiate environmental baseline work and permitting preparations for future development.
Further to the news release dated July 29, 2026, it has closed a private placement offering of
The funds will be used for general corporate purposes, to continue advancing their newly discovered Ruth Pegmatite and expansion drilling on their Casino Royale lithium zone.
Convertible Notes will bear interest at
Concurrent with the completion of the private placement, the investor will also be granted a right of first refusal with respect to any offtake arrangements regarding lithium produced, if any, by or on behalf of the Company from any mineral interest owned by the Company.
In connection with the closing of the private placement, The Company paid finders' fees of
The shares will be subject to restrictions on resale for a period of twelve months and one day in accordance with applicable securities laws.
The financing, although conditionally approved by the TSX Venture Exchange (TSXV), is subject to final approval.
Qualified Person
Jason Arnold, P.Geo., President of DCX Geological Consulting reviewed and approved the technical content of this news release. Jason is a consultant for the company and is not an Independent Qualified Person as defined by the National Instrument 43-101 due to their position as a Director of the Company.
About Imagine Lithium Inc.
Imagine is a junior mining exploration company focused on seeking and acquiring world-class mineral projects. The company holds the Jackpot lithium property located in the Georgia Lake area about 140 km NNE of Thunder Bay, Ontario, is approximately 12 km by road from the Trans-Canada Highway (Hwy 11), and is in proximity to sources of power, railroads, and ports. The Jackpot Property consists of 322 mineral claims covering 27,597 hectares. The Property contains NI 43-101 compliant Mineral Resources of 3.1 Mt grading
ON BEHALF OF THE BOARD
Simone Sze Man Suen, President
FOR FURTHER INFORMATION, PLEASE CONTACT:
Telephone: +1-807-355-5405
Toll Free: 1-888-945-4770
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedarplus.ca).
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311602