THE BOURSE WHISPERER: Sayona Mining (ASX: SYA) is getting serious about its bid for the North American Lithium Inc (NAL) operation, located in Québec, Canada.
Sayona Mining has put together a team of companies and advisers it considers to have the necessary skills needed to bring the NAL operation back into business following the commencement of the formal asset sale process for the lithium mine.
The NAL operation has a lithium mine and concentrator located in Abitibi near the mining district of Val d’Or, Québec and came to Sayona’s attention last year after spodumene production was halted in February 2019 and the company obtained protection from creditors in May.
Subsequently, on 16 September, the Québec Superior Court ended creditor protection and invited bids for the company’s assets.
Sayona has mustered a wealth of operational experience together with the engineering, environmental and financial capacity to ensure a successful turnaround of NAL, potentially restoring around 120 jobs, injecting new investment and boosting the province’s lithium strategy.
The team supporting Sayona in the bidding process includes Altura Mining, which will offer operational expertise and advice through common directorships.
Altura has experience in the realm having developed a world‐class hard rock spodumene (lithium) mine through to production, with its Western Australian mine fully operational just two years after breaking ground.
Engineering consultancy BBA, which is currently undertaking a revised Definitive Feasibility Study for Sayona’s Authier lithium project, also in Canada, is also on board.
Others on the team sheet include Centre Technologiques de Résidus Industriels (CTRI) – a leading technological solution provider, engineering service provider GCM Consultants, global engineering consultancy Hatch, New York‐based independent boutique investment bank Jett Capital Advisors, project cost control and management specialists Legico‐CHP, and international professional services firm PricewaterhouseCoopers.
Sayona believes this team would give NAL its best prospects for a successful turnaround, with the added advantage of combining the synergies from the Authier project.
“We’re hitting the ground running with a team supporting the bid that has a proven track record of delivering results, with expertise in producing spodumene in similar mining facilities, taking into consideration the complexity of such production,” Sayona Mining managing director Brett Lynch said in the company’s announcement to the Australian Securities Exchange.
“Importantly too, there is the unique advantage of combining lithium produced from our emerging Authier project with the lithium at the NAL site to achieve the required quality for the manufacturing of lithium batteries, as sought by the Québec Government.
“Overall, Sayona’s team offers the best combination of experienced global mining professionals that together with the necessary engineering expertise and financial backing will ensure industry best practice is achieved, delivering returns for investors, economic benefits for Québec and positive outcomes for all stakeholders.”