Piedmont Lithium inks strategic partnership with Sayona Mining

• Piedmont Lithium (NASDAQ:PLL) +3.3% premarket, entered into a strategic partnership with Sayona Mining (DMNXF) to purchase equity stakes in Sayona and its 100% owned Quebec subsidiary, Sayona Quebec, as well as a binding supply agreement for at least 50% of Sayona Quebec’s planned spodumene concentrate production.
• Under the agreement, Piedmont will acquire total 19.9%, an initial 9.9% equity interest in Sayona for ~$3.1M and two unsecured convertible notes for ~$3.9M, resulting in Piedmont acquiring an additional 10.0% equity interest in Sayona. Additionally, Piedmont will also purchase a 25.0% stake in Sayona Quebec for ~$5.0M in cash.
• Under the supply agreement, Sayona Quebec will supply to Piedmont the greater of 60K t/y or 50% of Sayona Quebec’s spodumene concentrate production (SC6) production at market prices on a life-of-mine basis.
• The share placement and issue of the convertible notes are expected to close on January 11, 2021 with the project investment expected to close in February 2021.
• The company plans to change its domicile from Australia to the United States.