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Piedmont Lithium Receives Partial Prepayment for Inaugural Shipment Under NAL Offtake Agreement

lithium offtake agreement

Piedmont lithium receives partial prepayment for inaugural shipment under NAL offtake agreement.

Piedmont Lithium (“Piedmont” or the “Company”) (Nasdaq: PLL; ASX: PLL), a leading global supplier of lithium resources critical to the U.S. electric vehicle supply chain, announced receipt of a $31.6 million partial prepayment for the sale of 15,000 dry metric tons (“dmt”) of 5.4% Li2O lithium concentrate on an FOB vessel basis (Incoterms 2020) to a major international trading company (“Buyer”).

Vessel loading is scheduled for mid-September. The prepayment increased Piedmont’s cash position to approximately $100 million, reinforcing Piedmont’s strong balance sheet.

North American Lithium (“NAL”) commenced commercial production in March 2023 and delivered its first joint venture shipment of 20,500 dmt to a third-party in early August. Production ramp up continues to progress well, and Piedmont expects to receive, at a minimum, its full 2023 offtake allocation of 56,500 dmt of lithium concentrate (“PLL Shipments”), with the balance to be sold by the joint venture (“JV Shipments”).

Keith Phillips, President and CEO of Piedmont said:

This is a significant day for Piedmont Lithium as we announce the first shipment of lithium concentrate under our offtake agreement with NAL and the receipt of a prepayment, which significantly increases our cash position.

“We look forward to the additional Piedmont Shipments and JV Shipments planned for 2023, and we expect sales from Piedmont Shipments to help fund our strategic initiatives while reducing our need to raise equity in the market.”

“Additionally, we acknowledge the board level changes of our partner, Sayona Mining. We would like to thank Brett Lynch for his vision, which enabled Piedmont and Sayona Mining to successfully acquire and restart the NAL operations, and we look forward to continued success as we welcome James Brown as the interim CEO of Sayona Mining.”

About Piedmont Lithium

Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL) is developing a world-class, multi-asset, integrated lithium business focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America. Our goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where we hold an economic interest.

Our projects include our Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining (ASX: SYA) and in Ghana with Atlantic Lithium (AIM: ALL; ASX: A11).

These geographically diversified operations will enable us to play a pivotal role in supporting America’s move toward energy independence and the electrification of transportation and energy storage. For more information, follow us on Twitter @PiedmontLithium and visit www.piedmontlithium.com.

Highlights:

  • Partial prepayment of $31.6 million for September shipment of 15,000 dry metric tons of lithium concentrate
  • NAL ramp up progressing well and meeting Piedmont’s production expectations for 2023
  • Piedmont’s 2023 shipments under NAL offtake expected to total 56,500 dry metric tons

Piedmont Lithium Receives Partial Prepayment for Inaugural Shipment Under NAL Offtake Agreement, BELMONT, N.C, August 29, 2023

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