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.

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