Piedmont Lithium makes strategic investment in large Newfoundland project

Piedmont Lithium (ASX: PLL) has added another string to its global battery metals development bow with an investment in a large prospective lithium project in Newfoundland, Canada.

Piedmont has agreed to pay an initial approximate $2.3 million for a 19.9% equity interest in Vinland Lithium, a new entity established by Canadian firms Sokoman Minerals (40.1%) and Benton Resources (40.1%).

Under the strategic deal Piedmont will have the option to earn up to a 62.5% direct interest in Killick Lithium by spending an aggregate of approximately $13.8 million in exploration and development during the option period.

Killick Lithium is a wholly-owned subsidiary of Vinland Lithium with a 100% interest in the Killick Lithium project.

Upon Piedmont completing all earn-in options, Piedmont will have paid Benton and Sokoman up to a total of approximately $11.4 million in Piedmont shares.

Full marketing rights

Through a staged investment Piedmont will also be entitled to 100% marketing rights and a right of first refusal on 100% offtake rights to any lithium concentrate produced by the project on a life-of-mine basis at competitive commercial rates.

Piedmont chief operating officer Patrick Brindle said the new acquisition is part of the company’s strategy to grow its hard rock lithium resource base.

With this and other recent investments, Mr Brindle said Piedmont has made a particular focus on large targets in attractive locations as it builds momentum towards its aim to become a major lithium producer in a hungry North American market.

Favourable early results

“The Killick Lithium project comprises a vast land package in an attractive jurisdiction. Our team has visited the site on multiple occasions and conducted extensive due diligence. Early exploration results are favourable, and the project’s location is advantageous in terms of infrastructure and logistics,” Mr Brindle said.

“The Vinland lithium exploration team is highly experienced and will manage all aspects of the exploration program. While we help fund exploration activities at Killick lithium, our projects and operations teams remain focused on the ongoing development of our core portfolio, including the producing North American Lithium mine in Quebec and our planned operations in Ghana, Tennessee, and North Carolina.”

Piedmont arrival welcomed

Benson president and chief executive officer, Stephen Stares, welcomed Piedmont’s interest in the project, noting the global company has vast technical and geological knowledge in similar geology to that of the Killick pegmatites.

“We are extremely pleased to be partnering with such a high-profile and professional team as Piedmont. Through our due diligence period, we’ve learned that the Golden Hope Project will benefit tremendously from the combined knowledge of both teams. We believe this new alliance will be beneficial for all involved, as we continue to unlock Newfoundland’s lithium potential.”

Sokoman president and chief executive officer, Timothy Froude, said this agreement solidifies many positives for the project, and for the Sokoman-Benton alliance.

“The markets are challenging at this time and to be able to partner with a company the calibre of Piedmont Lithium, with the financial and technical strengths it carries, is very significant.”

First Newfoundland lithium breakthrough

The project was discovered in 2021 when Benton and Sokoman commenced their initial prospecting on the property.

It was the first discovery of spodumene-bearing pegmatite in Newfoundland and led to an upbeat in interest in the lithium potential of the island.

Covering 950 square kilometres of Newfoundland, the project has since been confirmed to host approximately 60 km of prospective strike length.

Piedmont noted that the project is geologically analogous to the Carolina tin-spodumene belt, which hosts Piedmont’s Carolina lithium project in the USA.

Significant data available

Benton and Sokoman’s exploration work at the property includes 61 exploratory drill holes, 50 of which intersected spodumene-bearing pegmatites.

Mineralisation in surface trenching and drilling has also been identified over a strike length of 2.5 km.

Piedmont says the early drilling results include multiple intercepts over 1.0% lithium oxide and demonstrate the potential for additional discoveries within the property.

Recent exploration work has also identified numerous soil and geophysical anomalies, highlighting high-priority drill targets.

The property features excellent infrastructure with close proximity to paved roadways, an electrical substation, and an ice-free, deepwater port.