The restart of Sayona Québec’s North American Lithium (NAL) operation has been formally permitted, according to the company (ASX:SYA; OTCQB:SYAXF).
Cost is approximately C$98 million.
In order to improve product quality, recovery, and plant availability, the Sayona Quebec (SYQ) board has officially approved the restart of spodumene concentrate production at the NAL operation in Quebec. This requires extensive plant and infrastructural upgrades. 25 percent of SYQ is held by Piedmont, while 75 percent is owned by Sayona Mining.
In the first quarter of 2023, the NAL is anticipated to start producing spodumene concentrate. According to the business, it will be the first local provider of lithium concentrates in North America.
The NAL restart project has been funded through cash contributions by both Sayona and Piedmont, each company having successfully completed significant capital raises in the first half of 2022. Following the restart of NAL operations, the offtake agreement with Piedmont entitles it to purchase the greater of 113,000 metric tons per year of spodumene concentrate, or 50% of production from NAL.
Prior to the NAL restart, the agreement provided for offtake of 60,000 tonnes or 50% of concentrate produced from ore mined at SYQ’s nearby Authier Lithium Project.
This offtake agreement will remain in place until the commencement of operation of a lithium conversion plant in Québec. At this point, spodumene concentrate produced from NAL will be preferentially delivered to that chemical plant upon the start of production. Any remaining concentrate not required by the conversion plant will be delivered to Piedmont.
Sayona said it is evaluating options for downstream processing in Québec.
By Deo Vuadi – firstname.lastname@example.org