Li-FT Power (ASX:LFT) said the Quebec Superior Court has approved its binding call option agreement with Stornoway Diamonds, 1127 Canada, and Deloitte Restructuring, granting the company the exclusive right to acquire the Renard diamond mine in Quebec or its holding companies for CA$1 at any time before June 23, 2028, according to an Australian bourse filing on Tuesday after market hours.
The company has paid a CA$12 million option fee, which will be held in trust pending government approval to defer rehabilitation work at Renard, per the filing. If the approval is not obtained by Oct. 3 or a later mutually agreed date, the fee will be refunded and the option will be terminated.
The company will cover the mine's estimated CA$18 million in annual care and maintenance costs during the option period while evaluating the feasibility of converting the site into a lithium processing facility, the filing said.
The transaction remains subject to regulatory approvals, the execution of a definitive acquisition agreement, and additional court approval, the filing added.