Piedmont Lithium (ASX:PLL) reports it’s partially owned subsidiary Sayona Quebec has entered into a strategic acquisition and earn-in agreement with Jourdan Resources for 48 claims of the Vallee Lithium Project in Quebec, Canada.
Under the agreement, Sayona Quebec which Piedmont owns 25% of with the rest held by Sayona Mining (ASX:SYA), will acquire 20 claims of Vallee outright which will be added to the company’s adjacent North American Lithium Project. Sayona Quebec can earn a 51% equity interest in the remaining 28 claims of Vallee by making a series of staged investments.
These investments include a 25% earned interest by spending CAD $4 million on exploration within 12 months, a 25% interest by spending a further CAD $6 million on exploration within 24 months, and a 1% interest if Sayona Quebec arranges funding for the development of a mine at Vallee.
Piedmont Lithium President and CEO Keith Phillips said the company is pleased that the additional claims provide an immediate expansion of the potential North American Lithium operating area.
“The claims of the Vallee Lithium Project represent the potential to extend or expand North American Lithium operations over time. At this time, we remain focused on near-term production of spodumene concentrate as North American Lithium advances towards the restart target of H1 2023.”
In addition to the equity ownership and earn-in rights in Vallee, Sayona Quebec also acquired around 9.99% ownership interest in Jourdan Resources, including the right to a seat on Jourdan’s board of Directors, and the agreement is subject to the completion of due diligence and receipt of any regulatory and exchange approvals.
Piedmont also reports commercial shipments of spodumene concentrate from North American Lithium could begin as early as Q3 2023, providing the company with revenue generation from the operation as well as product sales through Piedmont’s offtake agreement.
The company holds an offtake agreement for the greater of 113,000 tonnes per year or 50% of spodumene concentrate production at a ceiling proce of US $900/t on a life of mine basis.
Piedmont Lithium is a lithium business focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America.
Its projects include the Carolina Lithium and Tennessee Lithium Project in the United States, and partnerships in Quebec with Sayona Mining and in Ghana with Atlantic Lithium (ASX:A11).
Images: iStock
