Li-FT Power

Li-FT Power obtained court approval for a binding purchase option agreement to acquire the Renard diamond mine and the processing plant in Québec. The company paid an option premium of C$12 million, giving it the right to buy the assets or shares for C$1.00 until June 23, 2028; the premium is held in trust and will only be released after regulatory approval to postpone remediation work. Li-FT will cover estimated maintenance costs of C$18 million per year during the option period and intends to assess whether the plant can be converted for lithium processing. The announcement met a weak market reaction: the stock is trading near its 52-week low, revenue has fallen by 44% and the company is unprofitable, with market capitalization and a price-to-book ratio of 0.31 cited as valuation arguments. » More on de.investing.com

Li-FT announced a takeover of Winsome Resources at A$0.501 per share, a 62% premium to the unaffected price, to consolidate the Adina project and the adjacent Galinée property in Québec. The transaction is strategically supported by Avenir Minerals (a subsidiary of Agnico Eagle); Li-FT also plans a private placement of C$40m to fund exploration and development. The Adina project mineral resource is estimated at 61.4 Mt at 1.14% Li2O (indicated) plus 16.5 Mt (inferred), and license holder Lithium Royalty Corp could benefit materially from expected royalty payments. » More on de.investing.com