- Sayona Mining (SYA) receives approval from The Superior Court of Québec to acquire North American Lithium (NAL)
- In partnership with ASX-lister Piedmont Lithium (PLL), Sayona Mining’s subsidiary, Sayona Québec, will acquire NAL for $101.2 million
- The transaction is expected to close during quarter three of 2021, subject to a list of closing conditions
- Once finalised, the company plans to refurbish NAL’s facilities, which will include technical improvements and upgrading certain equipment
- Shares are trading 16.2 per cent higher at 8.6 cents each at 3:59pm AEST
The Superior Court of Québec has given Sayona Mining (SYA) the go ahead to acquire North American Lithium (NAL).
Through a joint bid with fellow ASX-lister, Piedmont Lithium (PLL), Sayona Mining’s Canadian subsidiary, Sayona Québec has been granted approval and vesting order to acquire all the issued and outstanding shares of NAL for a cash consideration of C$94.4 million ($A101.2 million).
The order of the Superior Court of Québec states that the NAL assets will be free and clear of any encumbrances other than certain specific permitted encumbrances.
Approval was granted following a substantive hearing of the joint motion on Monday.
The joint motion was contested by an alternative bidder for, and unsecured creditor of, North American Lithium.
Welcoming the Court’s decision, Sayona’s Managing Director, Brett Lynch called it a pivotal point for the company and its bid partner, Piedmont Lithium.
“We look forward to executing our turnaround plan in integrating NAL with our flagship Authier Lithium Project to transform the operation and create a world‐scale Abitbi lithium hub, advancing our plans for downstream processing in Québec.”
Expanding on this, the company said upon conclusion of the transactions, it intends to refurbish NAL’s facilities, including technical improvements as well as upgrading certain equipment.
Further, Sayona and Piedmont have set out commitments to carry out secondary processing of lithium in Québec within the next six years, in accordance with conditions set out in agreements negotiated with Investissement Quebec (IQ) as part of purchase and sale transactions.
The company provided an update on the bid last week, outlining the terms and conditions pertaining to completion of the transaction.
The deal is expected to close during quarter three of 2021 subject to the list of closing conditions which include receiving the necessary approvals under the ASX listing rules, clearances required under Canada’s Competition Act and Investment Canada Act, as well as pre‐closing reorganisation steps.
In a statement, the company also advised that it has utilised its controlled placement agreement with Acuity Capital to raise $5.8 million through the issue of 95 million SYA shares at 6.1 cents each.
The issue price represents a 1.4 per cent discount to the five‐trading day volume-weighted-average-price.
SYA said the funds raised will be applied to corporate development and operating activities.
Shares were trading 16.2 per cent higher at 8.6 cents each at 3:59pm AEST.