Piedmont Lithium (ASX:PLL, OTC:PLLTL) Inc has formed a strategic partnership with the newly minted Vinland Lithium Inc, investing C$2 million for a 19.9% equity stake.
The partnership will support Piedmont’s strategy to grow its hard rock lithium resource base with a focus on large targets in attractive locations.
Major North American supplier goals
Importantly, it furthers the company’s plans to be a major producer of lithium hydroxide for the North American market.
Through staged investments, Piedmont may acquire up to a 62.5% interest in Vinland's Killick Lithium Project, which is highly prospective over some 60 kilometres of strike length.
Piedmont is also set to secure the right of first refusal on future concentrate production.
Vinland Lithium is a joint venture between Sokoman Minerals Corp and Benton Resources Inc, each of which holds a 40.1% equity interest.
The Killick Lithium Project, entirely owned by Vinland Lithium, spans 950 square kilometres and is geologically similar to Piedmont's Carolina Lithium project.
Initial exploration, comprising 61 drill holes, indicates significant spodumene-bearing pegmatites.
What’s more, the project boasts excellent infrastructure, including proximity to paved roadways, an electrical substation, and a deepwater port.
Attractive jurisdiction
Chief operating officer Patrick Brindle said: "The Killick Lithium Project comprises a vast land package in an attractive jurisdiction. Our team has visited the site on multiple occasions and conducted extensive due diligence.
“Early exploration results are favourable, and the project's location is advantageous in terms of infrastructure and logistics.
"The Vinland Lithium exploration team is highly experienced and will manage all aspects of the exploration program.
“While we help fund exploration activities at Killick Lithium, our projects and operations teams remain focused on the ongoing development of our core portfolio, including the producing North American Lithium mine in Quebec and our planned operations in Ghana, Tennessee, and North Carolina."