Sayona Mining shares soar on strategic investment from Piedmont Lithium
(Kitco News) - Piedmont Lithium announced today that it has entered into agreements to purchase the equity stakes in Sayona Mining, as well as a binding supply agreement for at least 50% of Sayona Quebec’s planned spodumene concentrate production.
Piedmont said it will acquire an initial 9.9% equity interest in Sayona for approximately US$3.1 million and two unsecured convertible notes for approximately US$3.9 million that upon conversion would result in Piedmont acquiring an additional 10.0% equity interest in Sayona.
Piedmont will also purchase a 25.0% stake in Sayona Quebec for approximately US$5.0 million in cash.
Piedmont and Sayona Quebec have also entered into a binding spodumene concentrate supply agreement pursuant to which Sayona Quebec will supply to Piedmont the greater of 60,000 t/y or 50% of Sayona Quebec’s SC6 production at market prices on a life-of-mine basis.
Sayona Quebec owns the DFS-level Authier lithium project, the highly prospective Tansim lithium project, and is pursuing a bid to acquire Quebec-based North American Lithium’s assets.
President and CEO Keith D. Phillips commented, “Piedmont’s partnership with Sayona will provide multiple benefits. Sayona has high quality asset in a favorable location, and the investments are being made at an attractive valuation. The investments are additive to Piedmont from a resources and reserves perspective, and the spodumene supply agreement will offset our Tesla commitments in the near term and position us for longer term growth in lithium hydroxide production. Furthermore, Sayona’s pursuit of the brownfield assets of NAL offers a unique regional consolidation opportunity.”
Sayona Mining shares were more than 60% up on the news.