Li-FT Power Ltd. has obtained a binding call option to acquire the Renard diamond mine site or its owning companies, aiming to repurpose its processing infrastructure for lithium production. The deal hinges on Canadian court approval and involves a significant option fee and care commitments.
- Exclusive two-year option to acquire Renard mine assets or shares
- C$12 million option fee payable upfront, with C$1 exercise price
- Renard’s 2.2Mtpa plant potentially adaptable for lithium spodumene processing
- Acquisition could reduce capital costs and environmental impact for Adina project
- Transaction subject to Superior Court of Québec approval and regulatory consents
LIFT Grabs Strategic Option on Renard Diamond Mine
Li-FT Power Ltd (ASX:LFT) has taken a significant step towards expanding its lithium footprint by securing an exclusive call option to acquire the Renard diamond mine site in Québec. The binding agreement, signed on June 23, 2026, grants LIFT the right to purchase either the mine’s assets or the shares of the owning companies, Stornoway Diamonds or 11272420 Canada Inc., for a nominal C$1.00 exercise price.
This option comes with a hefty C$12 million fee payable immediately, held in trust pending regulatory approvals. The deal is contingent on approval from the Superior Court of Québec under the Companies’ Creditors Arrangement Act (CCAA), with a key court hearing scheduled for July 2, 2026. The court’s blessing is crucial as Renard is currently under restructuring proceedings due to Stornoway’s financial difficulties.
Repurposing Renard’s Processing Plant for Lithium
Renard’s processing facility, commissioned in 2016, boasts a 2.2 million tonnes per annum (Mtpa) capacity and includes crushing, grinding, dense media separation, and ore sorting circuits. LIFT sees potential to adapt this infrastructure for processing spodumene pegmatite ore from its nearby Adina Lithium Project, located just 60 kilometres away. This could provide a rare opportunity to fast-track lithium production by utilising an existing brownfields site with established mineral processing permits.
The Renard site also features extensive supporting infrastructure, including a 16MW LNG-fired power station, a 330-bed camp, an all-season road link to a national railway at Chibougamau, and an airport with 24-hour operability. These assets could materially reduce upfront capital expenditure, lower project risk, and shrink the environmental footprint compared to greenfield lithium developments.
Financial and Operational Commitments During Option Period
LIFT has a two-year window, extendable by one year, to exercise the option. During this period, the company will be responsible for care and maintenance costs at Renard, estimated at C$18 million per year, which must be funded in advance and held in trust. Should LIFT proceed with the acquisition, it will assume full responsibility for mine closure and remediation.
The option agreement includes conditions such as satisfying release conditions related to rehabilitation postponement, securing a financial guarantee compliant with Québec’s Mining Act, and obtaining all necessary regulatory approvals, including from the TSX Venture Exchange. Failure to meet these conditions or secure court approval by July 10, 2026, will result in the option fee being returned and the agreement terminated.
Strategic Fit with LIFT’s Lithium Ambitions
LIFT’s portfolio includes the Adina Lithium Project in Québec and the Yellowknife Lithium Project in the Northwest Territories. The acquisition of Renard aligns with its strategy to develop hard rock lithium assets in Canada and strengthen its position in the EV battery supply chain. The company’s recent mineral resource estimate for Adina shows an indicated resource of 60.5 million tonnes at 1.14% Li2O, underscoring the project’s scale.
Repurposing Renard’s diamond processing plant for lithium could accelerate LIFT’s pathway to production, leveraging over C$900 million already invested in the site. However, the technical, economic, environmental, and social feasibility of this repurposing remains to be confirmed during the option period.
While the transaction offers promising synergies, it carries execution risks tied to court rulings, regulatory approvals, and financing. LIFT’s governance framework, recently updated to meet Canadian and ASX standards, will be tested as it navigates these complexities.
Bottom Line?
LIFT’s exclusive option on Renard offers a rare shortcut to lithium production but hinges on court approval and successful plant repurposing studies.
Questions in the middle?
- Will the Superior Court of Québec approve the option agreement at the July hearing?
- Can LIFT successfully adapt Renard’s diamond processing plant for spodumene lithium ore?
- How will LIFT finance the ongoing care, maintenance, and potential acquisition costs?