Li-FT Power secures option to acquire Renard diamond mine

Li-FT Power Ltd has announced that the Superior Court of Québec approved a binding call option agreement to acquire the Renard diamond mine and processing facility in Québec. The company paid a C$12 million option fee for the exclusive right to purchase the assets or shares of Stornoway Diamonds (Canada) Inc. or its parent company for C$1.00 during two years ending June 23, 2028. The option fee is held in trust pending authorisation from the Ministère des Ressources naturelles et des Forêts to postpone rehabilitation work at the site.

If the authorisation is not received by October 3, 2026, the option fee will be returned to Li-FT Power, and the option will terminate. Upon approval, the fee will be distributed to secured creditors in Stornoway’s restructuring proceedings under the Companies’ Creditors Arrangement Act.Li-FT Power will be responsible for care and maintenance costs estimated at C$18 million annually during the option period. The company plans to use this time to assess the feasibility of repurposing the facility for lithium processing, according to the press release statement. The acquisition comes as Li-FT Power’s stock trades near its 52-week low at $0.93, down 51% over the past year. Despite current challenges, including a revenue decline of 44% and unprofitability over the last twelve months, InvestingPro analysis suggests the stock is undervalued at its current market capitalisation of $49 million. The company’s Price-to-Book ratio of 0.31 indicates a significant discount to book value.