Piedmont Lithium, a leading lithium producer based in North Carolina, has recently announced a strategic investment in Vinland Lithium, a new company established by Sokoman Minerals and Benton Resources. The deal, valued at 2 million Canadian dollars ($1.5 million), grants Piedmont Lithium an almost 20% stake in Vinland Lithium, with an opportunity to increase its ownership to approximately 63% through a series of staged investments.
Vinland Lithium owns the Golden Hope project in southwestern Newfoundland, a region geologically similar to Piedmont Lithium's successful Carolina lithium project. As part of the agreement, Piedmont will have exclusive marketing rights and the first option to purchase any lithium concentrate produced by the project at competitive commercial rates. This aligns with Piedmont's overall strategy of expanding its lithium resource base and consolidating its position as a major supplier of lithium hydroxide in the North American market.
In addition to the initial investment, Piedmont has the potential to acquire a 70% direct and indirect ownership interest in the Killick project, encompassing both land and mineral rights. As a result, Benton Resources and Sokoman Minerals will receive up to C$10 million in Piedmont shares upon completion of all earn-in options. Furthermore, Benton Resources and Sokoman Minerals will retain a 2% royalty on precious metal returns and the value of lithium extracted from the Killick project.
This latest move solidifies Piedmont Lithium's commitment to strategically diversify its portfolio and capitalize on promising opportunities in key locations. With its expanding presence in Canada, Piedmont is well-positioned to achieve its goal of becoming a leading lithium producer for the North American market.
