- \n
- \nUS$12 million investment to acquire 19.9% of Sayona Mining Limited and 25.0% of Sayona Quebec\n<\/li>\n
- \nBinding supply agreement for 50% of Sayona Quebec\u2019s spodumene concentrate production\n<\/li>\n
- \nGeographic diversification into a world-class mining jurisdiction with large resource base\n<\/li>\n
- \nPiedmont positioned to become a major producer of lithium hydroxide from internal and 3rd<\/sup> party spodumene\n<\/li>\n<\/ul>\n
NEW YORK–(BUSINESS WIRE<\/a>)–Piedmont Lithium Limited<\/b> (\u201cPiedmont<\/b>\u201d or \u201cCompany<\/b>\u201d) is pleased to announce that it has entered into agreements (\u201cAgreements\u201d<\/b>) to establish a strategic partnership with Sayona Mining Limited (\u201cSayona\u201d<\/b>) (ASX:SYA<\/b>) through the purchase of equity stakes in Sayona and its 100% owned Quebec subsidiary, Sayona Quebec Inc (\u201cSayona Quebec\u201d<\/b>), as well as a binding supply agreement for at least 50% of Sayona Quebec\u2019s planned spodumene concentrate production.\n<\/p>\n
\nPiedmont will acquire an initial 9.9% equity interest in Sayona for approximately US$3.1 million (\u201cShare Placement<\/b>\u201d) and two unsecured convertible notes (\u201cConvertible Notes<\/b>\u201d) for approximately US$3.9 million that upon conversion would result in Piedmont acquiring an additional 10.0% equity interest in Sayona. Piedmont will appoint one director to Sayona\u2019s Board of Directors. Piedmont will also purchase a 25.0% stake in Sayona Quebec for approximately US$5.0 million in cash (\u201cProject Investment<\/b>\u201d). Sayona Quebec owns the DFS-level Authier lithium project, the highly prospective Tansim lithium project, and is pursuing a bid to acquire Quebec-based North American Lithium\u2019s (\u201cNAL<\/b>\u201d) assets.\n<\/p>\n
\nPiedmont and Sayona Quebec have also entered into a binding spodumene concentrate (\u201cSC6<\/b>\u201d) supply agreement (\u201cSupply Agreement<\/b>\u201d) pursuant to which Sayona Quebec will supply to Piedmont the greater of 60,000 t\/y or 50% of Sayona Quebec\u2019s SC6 production at market prices on a life-of-mine basis.\n<\/p>\n
\nThe Share Placement and issue of the Convertible Notes are expected to close the week of January 11, 2021 with the Project Investment expected to close in February 2021. Material terms of the Agreements are included in the Summary of Transaction Terms at the end of this announcement.\n<\/p>\n
\nKeith D. Phillips, President and Chief Executive Officer, commented: \u201cPiedmont\u2019s partnership with Sayona will provide multiple benefits. Sayona has high quality asset in a favorable location, and the investments are being made at an attractive valuation. The investments are additive to Piedmont from a resources and reserves perspective, and the spodumene supply agreement will offset our Tesla commitments in the near term and position us for longer term growth in lithium hydroxide production. Furthermore, Sayona\u2019s pursuit of the brownfield assets of NAL offers a unique regional consolidation opportunity.<\/i><\/p>\n
\u201cQuebec is poised to become an important lithium hydroxide production center given its abundant mineral resources, low-cost, sustainable hydro-electric power, proximity to major US and European electric vehicle markets, and pro-electrification stance of provincial leaders. Sayona\u2019s assets are favorably located in the Val-d\u2019Or region of central Quebec, home to major mining concerns and proximate to first-class infrastructure. Sayona\u2019s core Authier project is well-advanced, with reserves declared and DFS complete, the nearby Tansim project offers strong exploration potential, and the regional consolidation opportunities including NAL are intriguing.\u201d<\/i><\/p>\n
\u201cThis is a very exciting step for Piedmont. We look forward to supporting Sayona\u2019s team as they drive day-to-day activities in Quebec, while Piedmont\u2019s team focuses on its core interests in North Carolina. 2021 will be an important year for our Piedmont Lithium Project, as we plan to expand our mineral resources, finalize permitting, execute additional lithium offtake agreements, complete an integrated definitive feasibility study, and secure strategic project financing. We are fortunate to have a strong balance sheet to comfortably fund the Sayona investments without compromising our aggressive plans in North Carolina.\u201d<\/i><\/p>\n
About Sayona Mining<\/b><\/p>\n
\nSayona Mining Limited (ASX:SYA; OTC:DMNXF) is an emerging lithium miner, with projects in Qu\u00e9bec, Canada and Western Australia. In Qu\u00e9bec, Sayona is progressing a bid for the North American Lithium mine with the backing of a world-class advisory team, while advancing its flagship Authier Lithium Project and its emerging Tansim Project. In Western Australia, the Company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium. For more information, please visit www.sayonamining.com.au<\/a>.\n<\/p>\n
About Piedmont Lithium<\/b><\/p>\n
\nPiedmont Lithium Limited (ASX:PLL; Nasdaq:PLL) holds a 100% interest in the Piedmont Lithium Project, a pre-production business targeting the production of 160,000 t\/y of spodumene concentrate and the manufacture of 22,700 t\/y of battery quality lithium hydroxide in North Carolina, USA to support electric vehicle and battery supply chains in the United States and globally. Piedmont\u2019s premier southeastern USA location is advantaged by favorable geology, proven metallurgy and easy access to infrastructure, power, R&D centers for lithium and battery storage, major high-tech population centers and downstream lithium processing facilities. Piedmont has reported 27.9Mt of Mineral Resources grading at 1.11% Li2O located within the world-class Carolina Tin-Spodumene Belt (\u201cTSB\u201d) and along trend to the Hallman Beam and Kings Mountain mines, which historically provided most of the western world\u2019s lithium between the 1950s and the 1980s. The TSB has been described as one of the largest lithium provinces in the world and is located approximately 25 miles west of Charlotte, North Carolina.\n<\/p>\n
Summary of Transaction Terms<\/b><\/p>\n
\n
\n \n Share Placement<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n Subscriber<\/b><\/p>\n<\/td>\n
\n \nPiedmont Lithium Limited (ASX:PLL)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Issuer<\/b><\/p>\n<\/td>\n
\n \nSayona Mining Limited (ASX:SYA)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n No. of Securities<\/b><\/p>\n<\/td>\n
\n \n336,207,043 shares\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Subscription Price<\/b><\/p>\n<\/td>\n
\n \nUS$0.0092 per share (aggregate of US$3,093,104.80)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Board Representation<\/b><\/p>\n<\/td>\n
\n \nFor so long as the Subscriber holds voting power of at least 9% in the Issuer, the Subscriber will have the right to appoint one person as a non-executive director of the Issuer\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Other <\/b><\/p>\n<\/td>\n
\n \nFor so long as the Subscriber holds voting power of at least 9% the Issuer must not issue shares (other than a pro-rata offer of shares to all shareholders on the same terms in which the Subscriber is entitled to participate) without the Subscriber\u2019s prior written consent\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
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