Piedmont Lithium has announced that Sayona Quebec, which Sayona Mining and Piedmont jointly own, has entered into a strategic acquisition and earn-in deal with Jourdan Resources Inc. for 48 claims of the Vallée Lithium Project.
In a statement, Piedmont said that the relocation would strengthen Sayona Quebec’s nearby North American Lithium (NAL) project operation.
According to the terms of the agreement, Sayona Quebec will purchase 20 Vallée claims outright, which will be added to NAL’s existing 19 claims on the neighbouring property. Sayona Quebec can gain a 51 per cent equity stake in Vallée’s remaining 28 claims through a series of tiered investments, which include:
- A 25 per cent earned income by spending C$4 million on exploration within 12 months,
- A 25% earned interest by investing an additional C$6 million in exploration within the next 24 months, and
- A 1% interest rate is obtained if Sayona Quebec secures funds for developing a mine at Vallée.
Sayona Quebec purchased an estimated 9.99 per cent ownership interest in Jourdan Resources and a seat on Jourdan’s board of directors, in addition to the equity ownership and earn-in rights in Vallée. The agreement is conditional on completing due diligence and obtaining any required regulatory and exchange approvals.
Piedmont President and CEO Keith Philips said the Company is pleased that the additional claims immediately extend the potential NAL operational area.
“The claims of the Vallée Lithium Project represent the potential to extend or expand NAL operations over time. At this time, we remain focused on near-term production of spodumene concentrate as NAL advances toward the restart target of H1 2023,” Philips stated.
Commercial exports of spodumene concentrate from NAL could commence as early as Q3 2023, generating revenue for Piedmont and product sales through Piedmont’s offtake agreement. On a life-of-mine basis, the Company has an offtake agreement for the greater of 113,000 tonnes per year or 50 per cent of spodumene concentrate production at a ceiling price of US$900 per metric tonne.
