Sayona Mining secures investment and offtake partner in for Quebec Projects in Piedmont Lithium

Sayona Mining Ltd (ASX:SYA) (FRA:DML) (OTCMKTS:DMNXF) has entered a strategic partnership with leading US‐based lithium corporation, Piedmont Lithium Ltd (ASX:PLL) (NASDAQ:PLL) (OTCMKTS:PDDTF) that will accelerate the development of Sayona’s lithium projects in Québec, Canada. Piedmont will acquire an initial 9.9% equity interest in Sayona (share placement) and two unsecured convertible notes, which upon conversion would result in Piedmont being issued a further 10% of Sayona’s issued capital for total consideration of around US$7 million.   Piedmont will have the right to nominate one director to Sayona’s Board, providing its voting power is at least 9% and will also invest around US$5 million in cash for a 25% stake in Sayona Québec (project investment). The share placement and issue of the convertible notes are expected to close during the week of 11 January, with the project investment expected to close in February 2021. “Advancing growth plans in Quebec” The funding will help Sayona advance its growth plans in the province – including its flagship Authier Lithium Project, the emerging Tansim Lithium Project and creation of a lithium hub in Québec’s Abitibi region, as well as the company’s proposed bid for North American Lithium’s (NAL) assets. Sayona managing director Brett Lynch said: “I am delighted to welcome Piedmont as a strategic partner. “This agreement will underwrite the future of our Authier project, expedite our growth plans in Québec including our bid for North American Lithium, and enhance access to the U.S. market and investors. “Piedmont has shown tremendous vision in creating a base in North Carolina, a centre of lithium hydroxide production in the United States, and has secured significant supply agreements with leading EV makers.” “Win-win for both companies." Piedmont president and CEO Keith D Phillips said the agreement was a win‐win outcome for both companies. He said: “Piedmont’s partnership with Sayona will provide multiple benefits.  ““Sayona’s 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.” Additionally, Sayona has high-quality assets in a favourable location. Phillips said: “Quebec is poised to become an important lithium hydroxide production centre 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.” Binding offtake agreement The company has also agreed to a binding offtake agreement where Piedmont will acquire up to 60,000 tonnes per annum of spodumene concentrate or 50% of Sayona Quebec’s production – whichever is greater. The supply agreement is for Sayona Québec’s life‐of‐mine operations and is based on market pricing with a minimum price of US$500/tonne and maximum price of US$900/tonne on a delivered basis to Piedmont’s planned lithium hydroxide plant in North Carolina.   The agreement is conditional upon Piedmont and Sayona agreeing to a start date for spodumene concentrate deliveries between July 2023 and July 2024, based on the development schedules of both parties.