Li-FT Power Ltd. (LIFT) has entered into a binding call option agreement with Stornoway Diamonds (Canada) Inc. and related entities to acquire the Renard diamond mine, processing facility, and associated infrastructure in the Eeyou Istchee James Bay region of Quebec. The agreement, dated June 23, 2026, grants LIFT the exclusive option to purchase the assets or all shares of Stornoway or its parent company, subject to approval by the Superior Court of Quebec under the Companies' Creditors Arrangement Act (CCAA).
Background and Strategic Rationale
The Renard mine, which began mineral processing in 2016, ceased operations in January 2025 after completing five milling campaigns to recover remaining rough diamonds. The process plant has a design capacity of 2.2 million tonnes per annum and is equipped with jaw, cone, high-pressure grinding roll, dense media separation, and ore sorting circuits. LIFT aims to repurpose this infrastructure to process spodumene pegmatite ore from its Adina Lithium Project, potentially reducing upfront capital expenditure, project risk, and environmental footprint.
Over C$900 million has been invested in Renard to date. The acquisition could significantly advance LIFT's pathway to lithium production at a brownfields site in Quebec, supporting the Canadian electric vehicle battery supply chain. The site also holds mineral processing and operating permits that may facilitate this transition.
Transaction Terms and Conditions
Under the option agreement, LIFT has a two-year period to exercise the option for a nominal exercise price of C$1.00. The company will pay a C$12 million option fee in cash within two business days of execution, held in trust by the Monitor pending authorization from Quebec's Ministère des Ressources naturelles et des Forêts (MRNF) for postponement of rehabilitation and restoration work during the option period. If court approval is not received by July 10, 2026, or if release conditions are not met within three months of court approval, the option fee will be returned to LIFT and the option terminated.
During the option period, LIFT is responsible for care and maintenance costs to keep the mine site in good order. Upon exercise, LIFT will assume full responsibility for closure and remediation. The company must deposit C$18 million with the Monitor to cover estimated care and maintenance costs for the first year, with a similar deposit required for the second year.
Next Steps and Approvals
Court approval for the option agreement is being sought at a hearing scheduled for July 2, 2026. The transaction remains subject to several conditions, including regulatory approvals and the finalization of definitive acquisition agreements. LIFT will use the option period to confirm the technical, economic, environmental, and social feasibility of repurposing Renard for lithium processing.
