MD Update -Sayona Backs Quebec Plans to Boost Lithium Sector
- Quebec Government boosts investor confidence by announcing additional C$90 million budget investment in strategic minerals sector, amid push to develop sustainable and profitable lithium industry
- Canadian Government unveils rebates for purchase/rental of electric vehicles (EVs) amid continued growth of EV sector in North America and globally
- Sayona progressing bid for North American Lithium (NAL) with aim of combining NAL with Company's Authier Lithium Project to achieve successful turnaround.
In its provincial budget for fiscal 2021, the Quebec Government has committed to advancing electrification as a core part of its strategy, with an additional C$90 million (A$101m) dedicated to critical and strategic minerals including lithium.
The budget stated the Government would promote the development of critical and strategic minerals including lithium, with the aim of fostering innovation, developing expertise and value chains and contributing to sustainable development.
"Quebec has several assets, including a wide variety of minerals, technological expertise as well as clean energy sources at a price which will allow it to benefit from the development of these minerals," the Government said. Specific details of the initiative are to be released by Quebec's Minister of Energy and Natural Resources.
Sayona's Managing Director, Brett Lynch, said the Company was fully aligned with Quebec's plans to develop a sustainable and profitable lithium industry for the province.
"Sayona and the Quebec Government are in complete agreement on the need to transform the province's lithium industry to put Quebec at the forefront of the clean energy revolution," Mr Lynch said.
"We look forward to working even more closely with the Government and other key stakeholders as we advance our lithium projects in the province, for the benefit of all."
Full details of the latest budget are available at w ww. budget. finances. gouv.qc.ca/budget/2020-2021.
Quebec's latest backing for the lithium industry follows its 3 February announcement broadening the role of the province's investment arm, Investissement Quebec, with the Government increasing its capital to C$5 billion to allow it to play an even greater role in supporting business development.
The province has a number of competitive advantages, including proximity to established lithium-ion battery markets in North America, access to economical and environmentally friendly hydropower and world-class infrastructure, together with a geopolitical advantage amid the U.S. push to secure supplies of essential battery minerals such as lithium.
Adding to the positive momentum for battery minerals, the Canadian Government has announced rebates for the purchase or rental of electric or plug-in hybrid vehicles, further supporting demand for the growing EV industry. Sales of EVs in Canada grew by 25 per cent in 2019, with further growth expected following the rebates and increasing focus on environmental issues.
Quebec has enjoyed strong sales of EVs, with the Government offering various incentives including up to C$8,000 for the purchase or lease of a new EV, C$600 for a home charging station and C$5,000 on the purchase of workplace or multi-unit residential building charging stations.
Sayona is currently bidding for NAL, with the unique competitive advantage of being able to combine lithium (spodumene) produced from the Company's nearby Authier Lithium Project with the lithium at NAL, facilitating a significant improvement in plant performance and economics.
The Company has assembled a world-class team to support its bid, encompassing the necessary operational and technical expertise together with environmental, engineering and financial know-how to ensure a successful turnaround.
Amidst the global coronavirus outbreak, Raymond Chabot Inc, the monitor (administrator) of NAL together with NAL and other parties has been granted by Quebec's Superior Court an extension to the stay of proceedings against NAL to 15 May 2020, or such later date as the court may order.
Mr Lynch added: "Sayona is cognisant of current circumstances regarding COVID-19 and its impacts on Quebec, Canada and internationally. Ensuring the health and wellbeing of the community is the highest priority during this difficult time.
"We will continue to engage with key stakeholders to the fullest extent possible to deliver the benefits of our bid for NAL and ensure we are ready to hit the ground running as soon as possible."
About Sayona Mining Ltd
Sayona Mining Limited (ASX:SYA) (OTCMKTS:DMNXF) is an Australian, ASX-listed (SYA) company focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors. The Company has lithium projects in Quebec, Canada and in Western Australia.
Please visit us as at www.sayonamining.com.au
Sayona Mining Ltd