Piedmont Lithium Limited September 2020 Quarterly Report
Piedmont Lithium Limited (ASX: PLL; NASDAQ: PLL) reported significant progress in its September 2020 quarterly report. Major highlights include a binding agreement to supply spodumene concentrate to Tesla for five years, successful lithium hydroxide testwork from Piedmont's ore, and resuming drilling in the Carolina Tin-Spodumene Belt. Additionally, the company appointed a new VP of Sales & Marketing and completed a public offering, raising $57.5 million. These actions strengthen its balance sheet and advance plans to become the first new American lithium hydroxide producer in decades.
- Signed a binding agreement with Tesla for a five-year supply of spodumene concentrate.
- Successfully demonstrated the conversion of Piedmont ore to battery-quality lithium hydroxide.
- Resumed drilling in the Carolina Tin-Spodumene Belt, targeting approximately 5,600 meters.
- Raised $57.5 million through a U.S. public offering, enhancing financial stability.
- None.
NEW YORK--(BUSINESS WIRE)--Piedmont Lithium Limited (ASX: PLL; NASDAQ: PLL) (“Piedmont” or “Company”) is pleased to present its September 2020 quarterly report. Highlights during and subsequent to the quarter were:
- Signed binding agreement with Tesla, Inc. (“Tesla”) for the supply of spodumene concentrate from Piedmont’s North Carolina deposit to Tesla for an initial five-year term on a fixed-price binding purchase commitment from the delivery of first product;
- Completed a bench-scale lithium hydroxide testwork program which demonstrated conversion of Piedmont ore to battery-quality lithium hydroxide. Lithium hydroxide was produced from spodumene concentrate produced from core samples taken from Piedmont’s North Carolina deposit. Quality results compare favorably with current market specifications for battery quality lithium hydroxide;
- Resumed drilling at Piedmont’s properties located within the world-class Carolina Tin-Spodumene Belt (“TSB”) in North Carolina. The drill program will consist of approximately 5,600 meters with a primary objective to drill Exploration Target areas on the Core and Central properties, as well as previously untested occurrences of spodumene bearing pegmatite on regional properties;
- Appointed Mr. Austin Devaney as Vice President – Sales & Marketing. Mr. Devaney spent most of the past decade in senior marketing roles with Albemarle Corporation, most recently as Vice President, Strategic Marketing and Customer Excellence; and
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Completed a U.S. public offering of 2,300,000 of Piedmont’s American Depositary Shares (“ADSs”), with each ADS representing 100 of its ordinary shares, which includes the full exercise of the underwriters’ option, at an issue price of US
$25.00 per ADS, to raise aggregate gross proceeds of US$57.5 million (A$81.2 million ).
Keith D. Phillips, President and CEO of Piedmont, commented:
“We are extremely proud of the key milestones achieved by Piedmont during the quarter. Our agreement with Tesla highlights the strategic importance of Piedmont’s unique American spodumene deposit and confirms the trend toward spodumene as the preferred feedstock for the lithium hydroxide required in high-nickel batteries. Our relationship with Tesla represents the start of the first U.S. domestic lithium supply chain.
“Additionally, our recent U.S. public offering raised US
“We will soon commence an integrated definitive feasibility study (“DFS”), including a large infill drill campaign and pilot scale metallurgical testwork program, and will also prioritize the procurement of long lead-time items. We will continue to work on marketing arrangements for our lithium hydroxide and quartz by-products, focusing on the electric vehicle and solar panel markets, respectively. The DFS is planned for completion in Q2 2021.”
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