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Source: Sayona Mining
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  • Sayona Mining (SYA) updates the market on its bid to acquire North American Lithium (NAL) via its partly owned Sayona Quebec subsidiary
  • The bid, which has been made through NAL’s Companies’ Creditors Arrangement Act, requires approval from the Superior Court of Quebec
  • The offer comprises a number of debt payments and the assumption of all liabilities relating to assumed employees at the transaction’s close
  • The court has scheduled a substantive hearing of SYA’s joint motion on June 28
  • Sayona Mining shares are down by 12.3 per cent to 5.7 cents at 12:28 pm AEST

Sayona Mining (SYA) has updated the market on its bid to acquire North American Lithium (NAL) via Sayona Quebec, as part of NAL’s Companies’ Creditors Arrangement Act (CCAA).

Based in Canada, Sayona Quebec is a jointly held subsidiary of SYA and fellow ASX-lister Piedmont Lithium (PLL), which hold 75 and 25 per cent of the company respectively.

On June 11, both NAL and the court-appointed CCAA monitor filed a joint motion with the Superior Court of Quebec seeking approval of the acquisition.

A preliminary hearing of the motion has since been held, at which the court scheduled a substantive hearing of the joint motion for June 28.

Notably, this motion is also being contested by an alternative bidder for, and unsecured creditor of, North American Lithium.

While the sale to SYA ultimately cannot go ahead without the court’s approval, the transaction is further subject to all necessary approvals under the ASX listing rules, clearances required under Canada’s Competition Act and Investment Canada Act, and other closing conditions.

If approved by the court, SYA said the contemplated acquisition would be achieved through a reverse vesting order transaction, which would entail the implementation of a pre-closing reorganisation of NAL.

To this end, Sayona Quebec’s offer entails several components, including the assignment and assumption of the senior C$48.9 million (A$52.5 million) and subordinated C$63 million (A$67.6 million) secured debts of Investissement Quebec (IQ).

Further, the offer comprises the repayment of IQ’s interim financing facility in favour of North American Lithium, to the value of more than C$10.9 million (A$11.7 million).

In addition to these inclusions, and numerous other payments, the offer would see SYA assume all liabilities relating to assumed employees at the transaction’s close.

Sayona Mining’s managing director Brett Lynch said of the company’s process of acquiring NAL: “We remain confident of progressing this through to successful completion and delivering the benefits of our bid for all stakeholders.”

The company will provide a further update to the market following the court’s decision on the joint motion.

On Tuesday, Sayona Mining shares were trading down by 12.3 per cent to 5.7 cents at 12:28 pm AEST.

SYA by the numbers
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