PERTH (miningweekly.com) – ASX-listed Sayona Mining and fellow-listed lithium producer Piedmont Lithium have finalised the acquisition of North American Lithium (NAL) after gaining the necessary court and regulatory approvals.

Sayona and Piedmont made a joint C$196.1-million bid to acquire NAL, which halted spodumene production at its mine in 2019. NAL in 2018 produced 114 000 t of spodumene against a nameplate capacity of 180 000 t.

The operation also has the potential to produce battery-grade lithium carbonate with the necessary investment.

The settlement of the transaction followed Sayona Mining raising A$45-million through a share placement and a further A$20-million through a share purchase plan.

“We are extremely pleased to have taken control of NAL with our joint venture partner, Piedmont. Our local team in Québec is fully engaged in executing our turnaround plan at NAL, including the refurbishment of its facilities and its integration with our flagship Authier lithium project,” said Sayona MD Brett Lynch.

“We are committed to swiftly developing a profitable and sustainable business at NAL, delivering new jobs and investment and maximising the benefits of its existing facilities to make it the centre of our Abitibi lithium hub.”

Under the assignment agreement and the governance agreement, Sayona Québec has agreed to a series of commitments to pursue the establishment of industrial spodumene conversion facilities in the Province of Québec.

As part of the Quebec content undertakings, a feasibility study into the development of a spodumene conversion facility will be conducted within three years from the transaction’s closure. In addition, subject to certain conditions, NAL has undertaken to convert its spodumene production into lithium hydroxide or lithium carbonate within Québec from the sixth anniversary until the tenth anniversary of the closure.

“Demand for lithium to power North America’s electric vehicle and battery storage revolution continues to accelerate. The timing is perfect and we look forward to realising this opportunity, working closely with our partner, Piedmont and all other key stakeholders including Investissement Québec, as we help drive Québec’s clean energy future.”