PERTH (miningweekly.com) – ASX-listed Sayona Mining has inked a binding term sheet with Glen Eagle Resources to acquire Glen Eagle’s Authier lithium project, in Canada, for C$4-million.
The company told shareholders on Tuesday about the agreement, which was subject to the completion of a 60-day due diligence.
The Authier project has a measured and indicated resource of some 7.6-million tonnes, grading 0.96% lithium oxide for 73 999 t of contained lithium oxide, as well as an estimated 14 899 t of lithium oxide, classified as inferred.
Sayona said the acquisition of the Authier project dovetailed with the company’s capabilities and its strategy of sourcing raw materials required to produce lithium-ion batteries.
The project was considered to be a near-term development project and cash flow generation opportunity and was being acquired at a "very attractive" valuation.
Sayona told shareholders that the Authier deposit would create significant value-uplift potential for shareholders, as the project was advancing towards development.
The company’s strategy was to develop Authier in a staged approach, started with the conversion of the inferred mineral resource into a measured and indicated category through additional drilling, as well as the conversion of the resource into a reserve.
Sayona would also explore for extensions into the existing mineral resource and other potential mineralisation within the tenement package, with the aim of consolidating other potential resources in the district.
Environmental-impact statements and bankable feasibility studies would follow, along with offtake agreement negotiations, the sourcing of development finance and the construction of the project.