Benton, Sokoman Each Receive $1.0 Million In Piedmont Shares After Option Exercise
Two Canadian small-cap names are benefiting from a transaction it entered into with Piedmont Lithium (NASDAQ: PLL). Both Benton Resources (TSXV: BEX) and Sokoman Minerals (TSXV: SIC) are set to receive shares in Piedmont, following the exercise of an earn-in right by the mining major.
Piedmont has exercised a right to acquire a 16.35% interest in Killick Lithium, which is held by Vinland Lithium, a joint venture between the two Canadian juniors. Killick currently holds the Golden Hope project, which is found in Newfoundland.
Each company was issued $1.0 million in shares each of Piedmont in exchange for the interest, which amounts to 26,099 shares for each issuer. As part of the transaction Piedmont will fund at least $6.0 million in work expenditures on the project over the next 30 months. Under the option agreement, Piedmont can earn up to a 62.5% direct interest in Killick by spending $12.0 million in exploration and development, while issuing Sokoman and Benton $10.0 million in shares.
READ: Sayona, Piedmont Lithium Restart Spodumene Production At North American Lithium
As part of the option agreement, the Canadian juniors will retain a 2% royalty on the net returns of precious metals and the value of lithium.
Piedmont also owns a 19.9% stake in Vinland Lithium, which it obtained after investing $2.0 million into the venture. As a result, its direct and indirect exposure to the Killick project amounts to a 33% ownership interest.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
