Piedmont and Sayona Receive Court Approval for Acquisition of Québec-based North American Lithium

Rhea-AI Summary

Piedmont Lithium Inc. (Nasdaq: PLL) has secured approval from the Superior Court of Québec for its joint acquisition of North American Lithium (NAL) alongside Sayona Mining Limited. This acquisition will allow Sayona Québec to take ownership of all NAL shares and assets, free of encumbrances. NAL features a substantial lithium resource of 57.7 million tonnes and aims to leverage Québec's low-cost hydropower and infrastructure to enhance lithium hydroxide production. The partnership will synergize NAL’s operational restart with existing projects to serve the North American electric vehicle market.

Positive

• Acquisition of NAL enhances Piedmont's lithium asset portfolio.
• Strategic integration of NAL with Sayona's Authier project to optimize operations.
• Access to low-cost, zero-carbon hydropower in Québec supports sustainable production.
• Potential to serve the growing North American electric vehicle market.

Negative

• NAL was previously placed on care and maintenance due to weak lithium markets.
• Integration challenges between NAL and other projects may arise.

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.”

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210630005312/en/

FAQ

What is the purpose of Piedmont Lithium's acquisition of North American Lithium?

The acquisition aims to consolidate lithium resources, optimize operations, and enhance production capabilities in Québec.

What are the assets involved in the North American Lithium acquisition?

Sayona Québec will acquire all issued shares and substantial assets of North American Lithium, including a significant lithium resource.

How will the acquisition impact Piedmont Lithium's production capacity?

The acquisition is expected to increase Piedmont's lithium hydroxide production capacity by integrating NAL with existing projects.

When was the approval for the acquisition granted?

The approval was granted by the Superior Court of Québec during the Companies’ Creditors Arrangement Act proceedings.

What strategic advantages does the Québec location provide for Piedmont Lithium?

Québec offers access to low-cost hydropower, skilled labor, and favorable infrastructure, enhancing the competitiveness of lithium production.