Li-FT Power Secures Two-Year Option on Renard Mine with C$12 Million Fee
Li-FT Power has gained a two-year exclusive call option, approved by the Superior Court of Québec, to acquire the Renard diamond mine site with plans to explore its conversion for lithium processing.
- Court approves binding call option for Renard acquisition
- C$12 million option fee held pending regulatory release condition
- Two-year option period to assess lithium repurposing feasibility
- Li-FT responsible for C$18 million annual care and maintenance
- Transaction subject to regulatory and court approvals
Court Sanctions Li-FT's Exclusive Option on Renard Mine
Li-FT Power Ltd (ASX:LFT) has secured a significant foothold in the lithium sector by obtaining a binding call option to acquire the Renard diamond mine site in Québec, Canada. The Superior Court of Québec has formally approved the agreement, marking a key legal milestone for Li-FT's strategic pivot towards lithium processing.
The option, exercisable for a nominal C$1.00 over a two-year window ending June 2028, grants Li-FT the exclusive right to acquire either the mine's assets or the shares of its owning companies. This period will be used to rigorously evaluate the technical, economic, environmental, and social viability of converting Renard's existing infrastructure to process lithium spodumene ore, a move that could leverage the site's 2.2 million tonnes per annum processing capacity.
Financial Commitments and Conditions Attached to the Option
Li-FT has already paid a substantial C$12 million option fee, which remains held in trust pending regulatory approval from Québec's Ministère des Ressources naturelles et des Forêts. This approval is crucial to postpone mandatory rehabilitation and restoration work at Renard during the option period. Should this "Release Condition" fail to be met by early October 2026, Li-FT stands to recover its option fee and the agreement will terminate.
During the option period, Li-FT assumes responsibility for care and maintenance costs at the Renard site, estimated at C$18 million annually. If Li-FT exercises the option, it will also take on full liability for the mine's closure and remediation, underscoring a significant financial and operational commitment.
Renard's Strategic Location and Infrastructure Potential
Renard is situated in the Eeyou Istchee James Bay region, approximately 60 kilometres south of Li-FT's Adina Lithium Project. Its existing infrastructure includes a fully covered processing plant, an on-site airport, a 16 MW LNG-fired power station, and permanent road access to key logistics hubs. This established setup offers Li-FT a potential shortcut to lithium production, possibly reducing capital expenditure and environmental impact compared to greenfield developments.
The proximity to Chibougamau, which connects by road and rail to the critical mineral and EV battery supply chain hub in Bécancour, further enhances Renard's appeal as a lithium processing centre. Li-FT's plan to repurpose Renard aligns with broader industry trends seeking to optimise existing mining assets for the burgeoning lithium market.
Transaction Still Hinges on Multiple Approvals and Negotiations
The path to acquisition remains complex. Beyond the Release Condition, Li-FT must negotiate and execute a definitive acquisition agreement, secure court approval within the ongoing CCAA restructuring proceedings of Stornoway Diamonds (the current owner), and obtain all relevant regulatory consents, including from the TSX Venture Exchange. Each step carries inherent uncertainties that could affect timing and ultimate completion.
This deal builds on Li-FT's existing lithium portfolio, which includes the Adina and Yellowknife Lithium Projects. The company's recent drilling success at Yellowknife, confirming substantial spodumene mineralisation, complements its strategic push to integrate processing capabilities, potentially through Renard's infrastructure, to accelerate development timelines.
Bottom Line?
Li-FT’s court-approved option on Renard positions it to potentially fast-track lithium processing capacity, but the deal hinges on regulatory approvals and significant financial commitments over the next two years.
Questions in the middle?
- Will Li-FT secure the Release Condition approval by October 2026 to retain the option fee?
- How will Li-FT finance the substantial annual care and maintenance costs during the option period?
- What technical challenges might arise in repurposing a diamond mine processing facility for lithium spodumene?
