Acquisition of Sayona Mining Limited (ASX:SYA) Offers Potential Increase in NAL Resource

Acquisition offers potential increase in NAL resource

Brisbane, November 14, 2022 AEST (ABN Newswire) – Emerging lithium producer Sayona Mining Limited (ASX:SYA) (DML: ENG) (SYAXF:OTCMKTS) will target an expansion of future mining production capacity at its North American Lithium (NAL) operation in Quebec, following a strategic acquisition and acquisition agreement between Sayona Mining subsidiary NAL and Jourdan Resources Inc (CVE: JOR) on its adjacent Vallee Lithium project.

The Vallée project comprises 48 claims covering approximately 1,997 ha, very close to the tenure of the NAL mine with 20 leases located within 500 m of the mine limits. By comparison, NAL’s 19 claims cover some 582 ha.

Under the agreement, NAL will acquire 20 claims, covering 755.3 ha, providing an immediate extension of NAL’s operating area and enabling potential future expansion of the NAL mine infrastructure and processing facility. . The pegmatite targets are located near and along the NAL ore body.

NAL also has the right to acquire up to 51% of the remaining 28 claims of the Vallée project, covering 1,241.57 ha. NAL can earn up to 50% equity by spending C$4 million in the first year to earn a 25% stake and an additional C$6 million within two years to earn an additional 25%. An additional 1% capital is available if Sayona prepares a feasibility study and arranges financing for the construction of a mine in Vallée.

Sayona will aim to process any ore obtained from the acquisition area at its NAL operation, with NAL and Jourdan forming a joint venture to develop the Vallée project and its potential integration into NAL.

Sayona’s Quebec subsidiary will also acquire a 9.99% stake in Jourdan through a private placement of approximately C$1.5 million and will have the right to appoint one director to Jourdan’s board of directors.

Sayona general manager Brett Lynch said the deal gave NAL and its future production potential a substantial boost.

“Sayona continues to pursue expansion opportunities and this is an excellent opportunity to rapidly expand NAL’s potential resource base, paving the way for an increase in NAL’s future mining production capacity.” he declares.

“With the mineralized spodumene pegmatite dykes previously mined by NAL continuing directly on the Jourdan claims, we are keen to quickly initiate new drilling. Significantly, the additional leases acquired under this agreement will also allow for flexibility and further optimization of the design, production and production of the NAL mine. Infrastructure.”

He added, “Sayona is pursuing cooperative alliances with our neighbors to further develop our already leading lithium resource base in North America.

“The potential for more tonnes, faster production and higher grades only amplifies the opportunity for NAL to move downstream, whether into lithium carbonate or hydroxide production.”

Terms of compensation agreement

The agreement includes the following key commercial terms:

– Sayona and Jourdan reach a participation agreement regarding the formation of a joint venture on the Vallée project covering 28 claims, with NAL to spend up to C$10,000,000 in exploration to acquire up to a 51% interest over a period two-year period. The initial 25% capital will be earned by spending C$4 million in the first 12 months, with the right to earn an additional 25% by spending C$6 million within 24 months. Another 1% is subject to Sayona preparing a feasibility study and securing financing for the development of a mine. Interest earned will be held by NAL.

– Sayona and Jourdan will process mineral products produced by the joint venture at NAL’s facilities, terms and conditions to be negotiated and agreed upon to the reasonable satisfaction of both parties.

– Sayona will be the operator of the joint venture.

Desjardins Capital Markets acted as exclusive financial advisor and McCarthy Tetrault LLP acted as legal advisor to Sayona on the transaction.

Lithium Valley Project

The Vallée Lithium project comprises 48 claims covering 1,997 ha, very close to the tenure of the NAL mine. Twenty of the leases are located within 500 m of the mine tenure boundary. Known pegmatites have been recorded in previous explorations and trend along strike of the NAL ore body. Critically, the tenure secures the potential granodiorite host and its contact zone, which are important ore controls in the NAL deposit.

In the Jourdan concessions, some 14 occurrences of pegmatite are recorded in government data, indicating the strong exploration potential for the discovery of mineralization to be incorporated into the NAL mining.

Exploration work including geochemistry, geophysics and an aggressive drilling program is planned by Sayona. Sayona’s exploration team has already confirmed several high potential target areas for test drilling.

The Vallée project is located in Abitibi, Quebec, near the township of La Corne. The project is located in the heart of the southern part of the Abitibi Greenstone Belt, some 100 kilometers northeast of the mining towns of Rouyn-Noranda, 45 kilometers north of Val-d’Or, 50 kilometers northeast of Malartic (home of the Canadian-Mine Malartic), 30 kilometers southeast of Amos and adjacent to and near the Quebec Lithium property of RB Energy and adjacent to the NAL mine. The mineralized spodumene pegmatite dykes mined by NAL continue directly on the Jourdan claims.

The Vallée Lithium project claim block is geologically located on the northeast edge of the Preissac-Lacorne batholith and east of the edge of the late La Corne pluton. The intrusive rocks of the dioritic to early granodioritic suite constitute a large part of its geology targeted by the drilling. However, the upper part of the block contains volcanic rocks of felsic to mafic composition of the Aurora Group.

NAL comprises 19 contiguous claims covering 582.31 ha, located in the township of La Corne in the Abitibi-Témiscamingue region of Quebec. The project is located 60 km north of the town of Val d’Or, a major mining services centre, and close to Sayona’s Authier Lithium project.

NAL’s reboot is on track for Q1 2023, with licensing requests and provisioning both 96% complete by the end of September (see ASX release October 27, 2022).

Sayona aims to produce 220 kt of 6% spodumene concentrate (lithium) or 30 kt of lithium carbonate equivalent (LCE) from its Abitibi lithium hub, which, combined with the emerging hub in northern Quebec , represents the largest lithium resource base in North America.

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About Sayona Mining Limited

Sayona Mining LtdSayona Mining Limited (ASX:SYA) (OTCMKTS: SYAXF) is an ASX-listed Australian company (SYA) focused on sourcing and developing the raw materials needed to build lithium-ion batteries for the growing new and green technology sectors fast. The Company has lithium projects in Quebec, Canada and Western Australia.

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