The North American Lithium (NAL) mine, located in La Corne, in...

The North American Lithium (NAL) mine, located in La Corne, in Abitibi, could be sold to the Australian Sayona Mining, as desired and announced last month by the government of François Legault.

In a judgment rendered yesterday, Judge Martin Castonguay, of the Superior Court of Quebec, rejected the arguments presented by Quebec investors opposed to the transaction, and endorsed the acquisition of the mine by Sayona Mining and its partner. , Piedmont Lithium.

Fourteen parties were represented in this case which ended the mine buyout process, protected by the Companies' Creditors Arrangement Act since the fall of 2019. Investissement Québec (IQ) is one of these secured creditors, with a shortfall of some $ 110 million.

Unfounded reproaches

Dissatisfied with the way the controller fulfilled his role, investors - led by Quebec-based Central America Nickel (CAN) - demanded the cancellation of the sale to Sayona, the replacement of the controller and the resumption of the process.

However, according to the judge, the reproaches of the "disappointed offeror" against the controller were unfounded. “At no time has the controller abdicated his functions or powers. "

On the contrary, the controller's discussions with secured creditors are provided for by law and cannot be blamed. They are necessary, according to him, in his quest for the best compromise for those concerned.

The interested parties "are not only the creditors," he said. But also the employees, the local economy, the municipality and, to a certain extent, all taxpayers ”.

Thus, he believes, the cancellation of the process would be "to the detriment, among others, of local employees and suppliers who would otherwise benefit from the faster resumption of mine activities."

The judge therefore gives his approval to the transaction, the details of which - financial, in particular - remain to be revealed.

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