- Sayona Quebec, the subsidiary of Sayona Mining (SYA) and Piedmont Lithium (PLL), acquires North American Lithium (NAL)
- The Canadian acquisition will see Sayona’s flagship Authier and Tansim Lithium Projects integrated with NAL to create the Abitibi lithium hub
- Preparations are advancing to resume operations at the NAL mine, with a scoping study underway for the profitable production of spodumene concentrate from 2023
- Sayona Mining shares are up 12.5 per cent to trade at 15.8 cents, while Piedmont Lithium shares are up 7.48 per cent to trade at 79 cents
Sayona Quebec, the subsidiary of Sayona Mining (SYA) and Piedmont Lithium (PLL), has acquired North American Lithium (NAL).
Sayona Québec is 75-per-cent-owned by SYA, with the remaining quarter held by joint venture partner PLL.
Following the share purchase agreement announced earlier this year, the Canadian acquisition is a step forward for the joint venture as it progresses the growth strategy for its future Abitibi lithium hub.
Namely, the partners are aiming to integrate SYA’s Authier and Tansim Lithium projects with NAL to become Québec’s leading lithium producer.
The move follows a $45 million placement and $20 million share purchase plan, both of which were heavily oversubscribed.
Preparations are now advancing to resume operations at the NAL mine, with a scoping study underway for the profitable production of spodumene concentrate from 2023.
An evaluation of downstream processing at NAL is also progressing.
Notably, these activities form part of several commitments agreed by Sayona Québec under assignment and governance contracts to establish industrial spodumene conversion facilities in the province of Québec — known as the “Québec Content Undertakings”.
Sayona Mining Managing Director Brett Lynch welcomed the acquisition and said the joint venture partners were pleased to take control of North American Lithium.
“Our local team in Québec is fully engaged in executing our turnaround plan at NAL, including the refurbishment of its facilities and its integration with our flagship Authier Lithium Project,” he said.
“We are committed to swiftly developing a profitable and sustainable business at NAL, delivering new jobs and investment and maximising the benefits of its existing facilities to make it the centre of our Abitibi lithium hub.”
Further, and subject to conditions, North American Lithium is set to convert its spodumene production into lithium hydroxide or lithium carbonate within Québec from the sixth anniversary until the 10th anniversary of the closure.
Mr Lynch said the demand for lithium to power North America’s electric vehicle and battery storage revolution continued to accelerate.
“The timing is perfect and we look forward to realising this opportunity, working closely with our partner, Piedmont and all other key stakeholders, including Investissement Québec, as we help drive Québec’s clean energy future.”
Sayona Mining shares were up 12.5 per cent to trade at 15.8 cents at 10:20 am AEST, while Piedmont Lithium shares were up 7.48 per cent to trade at 79 cents cents at 10:20 am AEST.