Li-FT bets $12M to turn diamond mine into lithium hub

Li-FT Power (TSX-V: LIFT) has secured an exclusive option to acquire Québec’s Renard diamond mine and processing complex, a move that could significantly reduce development costs and accelerate production plans at its nearby Adina lithium project.

The Vancouver-based company signed a binding agreement granting it a two-year option to acquire either the Renard mine assets or the shares of owner Stornoway Diamonds, subject to approval by Québec Superior Court under creditor protection proceedings. Li-FT will pay a $12-million (US$8 Million) option fee and fund care and maintenance costs during the option period. 

The company said Renard’s 2.2-million-tonne-per-year processing plant, located about 60 km south of Adina, could potentially be repurposed to process spodumene ore from the lithium project. The option resurrects a plan considered by Adina’s previous owner, Winsome Resources, which Li-FT bought in a A$170-million ($167-million) all-share deal last month. 

“The Renard site represents a rare opportunity to acquire a large-scale permitted mining and processing complex in one of North America’s most prospective lithium districts,” Li-FT said. The company added that the existing infrastructure could materially lower capital requirements while shortening the timeline to production.

Site advantage

Li-FT has until June 2028 to exercise the option, with the possibility of a one-year extension. During that period, the company plans to evaluate the technical, economic, environmental and social feasibility of converting Renard into a lithium processing hub. Court approval of the agreement is scheduled to be considered on July 2.

The proposed acquisition could reshape development plans for Adina by allowing Li-FT to leverage more than $900 million in existing infrastructure rather than build a new processing facility from scratch. 

Renard includes a fully enclosed processing plant, a 16-megawatt power station, tailings facilities, water treatment infrastructure, an airport and a 330-bed camp. The site also holds permits that may support a transition from diamond mining to lithium processing as demand grows across Canada’s electric vehicle battery supply chain.