PLL General Discussion, page-2736

Sayona contract with L. Fournier et Fils termination consequences?

1. Financial Penalties & Compensation Early Termination Fees: The contract likely includes clauses specifying penalties for unilateral termination. Given the project's scale (C$200M over four years), Sayona might owe a significant portion of the remaining contract value or a predefined fee.

Restitution: L. Fournier et Fils may claim costs for mobilized equipment (e.g., 10 trucks, excavators), workforce (120 jobs created), and sunk investments (e.g., road maintenance, drilling/blasting subcontracts)

2. Operational Disruptions Project Delays: Termination could halt mining operations (stripping, blasting, ore transport), delaying NAL’s lithium production timeline (originally Q1 2023).

Subcontractor Impacts: Dynamitage Castonguay, hired for drilling/blasting, might also seek compensation or renegotiation.

3. Legal & Reputational RisksBreach Claims: If terminated without cause, L. Fournier could sue for damages (e.g., lost profits, workforce costs). McCarthy Tétrault’s involvement in the contract suggests robust legal safeguards.

Stakeholder Backlash: The project involves First Nations communities (Pikogan, Lac Simon ); termination could strain relationships and attract regulatory scrutiny.

4. Survival ClausesCertain obligations (e.g., confidentiality, dispute resolution) may persist post-termination per standard mining contracts.

Keep this stock if you want more inflation and share dilution... and possible loss of all. This is not financial advice, just some random person on HotCopper sharing information.