Published: February 12, 2021 |

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Piedmont Lithium has entered into agreements to establish a strategic partnership with Sayona Mining through the purchase of equity stakes in Sayona and its 100 percent owned Quebec subsidiary, Sayona Quebec, as well as a binding supply agreement for at least 50 percent of Sayona Quebec’s planned spodumene concentrate production.

Piedmont will acquire an initial 9.9 percent 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 percent equity interest in Sayona.

Piedmont will appoint one director to Sayona’s board of directors. Piedmont will also purchase a 25 percent stake in Sayona Quebec for approximately US$5.0 million in cash. 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 (NAL) assets.

Piedmont and Sayona Quebec have also entered into a binding spodumene concentrate (SC6) supply agreement to which Sayona Quebec will supply to Piedmont the greater of 60,000 t/y or 50 percent of Sayona Quebec’s SC6 production at market prices on a life-of-mine basis.

“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,” said Keith D. Phillips, president and chief executive officer.

“Quebec is poised to become an important lithium hydroxide production center given its abundant mineral resources, low-cost, sustainable hydro-electric power, proximity to major U.S. and European electric vehicle markets, and pro-electrification stance of provincial leaders. Sayona’s assets are favorably located in the Val-d’Or region of central Quebec, home to major mining concerns and proximate to first-class infrastructure. Sayona’s core Authier project is well-advanced, with reserves declared and DFS complete, the nearby Tansim project offers strong exploration potential, and the regional consolidation opportunities including NAL are intriguing,” added Phillips.

“This is a very exciting step for Piedmont. We look forward to supporting Sayona’s team as they drive day-to-day activities in Quebec, while Piedmont’s team focuses on its core interests in North Carolina. 2021 will be an important year for our Piedmont Lithium Project, as we plan to expand our mineral resources, finalize permitting, execute additional lithium offtake agreements, complete an integrated definitive feasibility study, and secure strategic project financing. We are fortunate to have a strong balance sheet to comfortably fund the Sayona investments without compromising our aggressive plans in North Carolina,” concluded Phillips.

About Sayona Mining
Sayona Mining Limited is an emerging lithium miner, with projects in Québec, Canada and Western Australia. In Québec, Sayona is progressing a bid for the North American Lithium mine with the backing of a world-class advisory team, while advancing its flagship Authier Lithium Project and its emerging Tansim Project. In Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.

To stop by Sayona Mining’s website, CLICK HERE

About Piedmont Lithium
Piedmont Lithium is an emerging lithium company focused on the development of its 100 percent-owned Piedmont Lithium Project in North Carolina, with the goal of becoming a strategic domestic supplier of lithium to the increasing electric vehicle and battery storage markets in the U.S.

The Piedmont Lithium Project is located in one of the premier regions in the world for lithium exploration, given its favorable geology and ideal location with easy access to infrastructure, power, R&D centers for lithium and battery storage and major high-tech population centers.

From the 1950s to 1990s, two major lithium mines operated in this region as well as two significant lithium processing facilities which continue to supply lithium products to U.S. customers today and are located within 20km of the Piedmont Lithium Project.

With continued land expansion, sampling and drilling programs scheduled during 2018, our aim is to fast track the Piedmont Lithium Project towards production as a fully-integrated domestic source of lithium and capitalize on the widely anticipated shortfall of lithium in global markets over the next decade.

To stop by Piedmont Lithium’s website, CLICK HERE

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