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- Lithium miner Sayona Mining (SYA) has struck a strategic partnership with Piedmont Lithium (PLL), a pre-production business aiming to supply materials into electric vehicle and battery supply chains
- Piedmont will invest up to $15.5 million in Sayona to acquire a 19.9 per cent of its issued capital and a 25 per cent interest in Sayona Quebec
- Sayona Quebec will also sell the greater of 60,000 tonnes per annum or half of its spodumene concentrate production for use in Piedmont’s lithium project in North Carolina
- SYA shares have been trading 78.6 per cent higher at 2.5 cents, while PLL shares have been trading 5.3 per cent lower at 44.5 cents
Lithium miner Sayona Mining (SYA) has struck a strategic partnership and made offtake arrangements with Piedmont Lithium (PLL).
Piedmont is a pre-production business aiming to supply materials into the electric vehicle and battery supply chains from its Piedmont Lithium Project in North Carolina.
Investment
Piedmont will invest up to $15.5 million in Sayona to acquire 19.9 per cent of its issued capital and a 25 per cent interest in Sayona Quebec.
Initially, the lithium company will pay around $9 million to gain a 9.9 per cent interest in Sayona via a share placement and two convertible notes. When those are converted, Piedmont will be issued a further 10 per cent of the miner’s issued capital.
However, for the second note to be converted, Sayona shareholders will need to give the tick of approval. As long as the investment is completed, Piedmont will have the right to nominate one director to Sayona’s Board.
Additionally, Piedmont will invest approximately $6.5 million in Sayona Quebec to secure a quarter of its issued capital.
The new cash will be funnelled into Sayona Quebec’s growth plans in the province, notably linked to advancing the Authier Lithium Project, the Tansium Lithium Project, and the development of a lithium hub.
Offtake agreement
The partners have also signed a binding offtake arrangement for Piendont to purchase 60,000 tonnes per annum, or 50 per cent — whichever is greater — of Sayona Quebec’s spodumene concentrate production.
Piedmont will use the concentrate in the Piedmont Lithium Project in North Carolina, where the company is aiming to produce 160,000 tonnes of spodumene concentrate every year and 22,700 tonnes of battery-quality lithium hydroxide per annum.
The supply deal is, however, conditional upon both parties agreeing upon a start date for the delivery of spodumene concentrate.
SYA shares have been trading 78.6 per cent higher at 2.5 cents, while PLL shares have been trading 5.3 per cent lower at 44.5 cents at 10:16 am AEDT.
