The Sayona Mining Ltd (ASX: SYA) share price has returned from its trading halt with a bang on Wednesday.
In morning trade, the lithium explorer's shares are up a massive 27% to 9.4 cents.
Why is the Sayona Mining share price rocketing higher?
The catalyst for the rise in the Sayona Mining share price today has been an update on its joint bid with Piedmont Lithium Inc (ASX: PLL) to acquire Quebec-based North American Lithium (NAL).
According to the release, the Superior Court of Quebec has granted an approval and vesting order in relation to the acquisition by its Sayona Quebec business. This means the parties can now push ahead with the acquisition valued at a total of C$196.2 million.
Sayona's Mining's Managing Director, Brett Lynch, believes this is a key milestone for the company, its partner Piedmont Lithium, and also the city of Quebec.
He said: "This is a pivotal point for not only ourselves and our bid partner Piedmont Lithium, but also Québec and its future as a leading player in the clean energy industry of the 21st century. We look forward to executing our turnaround plan in integrating NAL with our flagship Authier Lithium Project to transform the operation and create a world‐scale Abitbi lithium hub, advancing our plans for downstream processing in Quebec."
What now?
The release explains that the transaction is expected to close during the third quarter of 2021, subject to the satisfaction of certain conditions. These conditions include Sayona Mining obtaining any necessary approvals under the ASX Listing Rules relating to its share purchase plan and other necessary regulatory approvals, as well as other customary closing conditions.
Upon completion, Sayona Quebec intends to refurbish NAL's facilities. This includes technical improvements as well as the upgrading of certain equipment. After which, it will integrated the operation with the nearby Authier project to transform it and create a world‐scale Abitibi lithium hub.
Today's gain means the Sayona Mining share price is now up a remarkable 750% in 2021.
