By Robb M. Stewart
Piedmont Lithium has struck a deal to buy a stake in a large prospective lithium project in eastern Canada that is geologically similar to the area hosting its Carolina lithium project.
The North Carolina-based company said it agreed to pay 2 million Canadian dollars ($1.5 million) for an almost 20% interest in Vinland Lithium, a new company set up by Sokoman Minerals and Benton Resources. It also can earn up to a roughly 63% stake, through a staged investment, in a subsidiary of Vinland Lithium that owns the Golden Hope project in southwestern Newfoundland, which will be renamed the Killick Lithium project.
The deal is part of the company’s strategy to grow its lithium resource base with large targets in key locations as it seeks to become a major producer of lithium hydroxide for the North American market.
Piedmont will be entitled to all marketing rights and a right of first refusal on all offtake rights to any lithium concentrate produced by the project on a life-of-mine basis at competitive commercial rates.
Benton and Sokoman said Piedmont will be able to earn up to a 70% direct and indirect ownership interest in the area and lands that make up the Killick project. The companies, which will retain a 2% royalty on the net returns of precious metals and the value of lithium received from Killick, will receive a total of up to C$10 million Piedmont shares when all earn-in options are completed.
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