Piedmont and Sayona Receive Court Approval for Acquisition of Québec-based North American Lithium
30 June 2021 - 8:30PM
Business Wire
Plans Underway for Large-Scale Lithium
Hydroxide Production in Québec
- Superior Court of Québec approves Sayona Québec’s acquisition
of North American Lithium (“NAL”)
- Total cash consideration of approximately C$94mm with
transaction completion expected in Q3 2021
- Piedmont will fund approximately C$23.5mm, representing its 25%
stake in Sayona Québec
- Detailed study of the integration of NAL with Sayona Québec’s
Authier Project to commence in the coming weeks
- Sayona and Piedmont jointly committed to development of lithium
hydroxide capacity in Québec
Piedmont Lithium Inc. (Nasdaq: PLL) is pleased to
announce that the Superior Court of Québec (Commercial Division)
has granted an approval and vesting order regarding the Company’s
joint bid with Sayona Mining Limited (ASX:SYA) for the acquisition
of North American Lithium (“NAL”) by Sayona Québec Inc. (“Sayona
Quebec”) in the context of the Companies’ Creditors Arrangement Act
(CCAA) proceedings of NAL. Piedmont is a 25% shareholder of Sayona
Québec and owns 19.79% of the outstanding common shares of Sayona
Mining Limited.
At the completion of the transaction Sayona Québec will acquire
all the issued and outstanding shares of NAL and substantially all
of its assets. The order of Superior Court of Québec provides that
the assets acquired in the transaction will be free and clear of
any encumbrances other than certain specific permitted encumbrances
accepted by Sayona Québec.
NAL owns a large, previously-producing lithium asset project
located approximately 20 miles from Sayona’s core Authier project
near the important mining center of Val-d’Or in the Abitibi region
of Québec. NAL is fully permitted, has a Mineral Resource of 57.7Mt
@ 1.05% Li2O, and has had over $400 million invested in mining,
concentrate and refining capacity. The project was operational and
ramping toward nameplate production in 2018, when it was placed on
care and maintenance due to weak lithium markets and a sub-optimal
capital structure.
Sayona and Piedmont are proceeding with technical studies that
contemplate integrating Sayona Québec’s Authier and Tansim projects
with the facilities at NAL, including restart requirements,
technical improvements, and optimization of NAL operations in order
to fully utilize this competitive set of assets. Furthermore,
Sayona and Piedmont will prioritize manufacturing of lithium
hydroxide in Québec, capitalizing on Québec's competitive
advantages, including access to zero-carbon, low-cost hydropower,
skilled labor, world-class infrastructure, and the initiative of
both the Canadian and provincial governments to develop the
lithium-ion battery materials and EV industry.
Keith D. Phillips, President and Chief Executive Officer,
commented: “We are very pleased to be working with our partners at
Sayona to consolidate the spodumene resources in the Abitibi region
of Québec. NAL is a past-producing business with a large,
high-grade mineral resource located in close proximity to Sayona’s
Authier project and to the important mining center of Val-d’Or,
Québec. We will work closely with Sayona to refine the plans to
unify the Authier and NAL spodumene operations, and we are both
committed to building integrated spodumene to lithium hydroxide
capacity in Québec. Piedmont strongly believes that ‘location and
regionalization of the battery supply chain matters,’ and the
combined Québec operations will be well-positioned to serve the
fast-growing North American electric vehicle business. The Québec
operations are an ideal complement to our flagship Carolina Lithium
Project in Gaston County, NC, and further Piedmont’s objective of
being North America’s leading lithium hydroxide producer.”
Click here to view the full announcement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210630005312/en/
Keith Phillips President & CEO T: +1 973 809 0505 E:
kphillips@piedmontlithium.com
Brian Risinger VP - Investor Relations and Corporate
Communications T: +1 704 910 9688 E:
brisinger@piedmontlithium.com
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