Li-FT Power Clears Final Hurdle on Renard Option as C$12M Fee Is Released
Key Takeaways
- The C$12 million Renard Option Fee is being released to secured creditors after Québec's MRNF allowed rehabilitation work to be postponed to June 23, 2028, the sole remaining condition.
- LIFT's call option on Renard carries a nominal C$1.00 exercise price and runs for two years to June 23, 2028, unless extended.
- Care and maintenance costs of about C$18 million a year fall solely on LIFT, which has already advanced C$18 million to the Monitor.
- Renard offers a 2.2 Mtpa plant, a 16 MW power station and a 330-bed camp roughly 60 km from the Adina Lithium Project, but lithium feasibility is unproven.
- LIFT also committed a minimum US$1.4 million, non-refundable, to i2i Marketing Group for investor awareness, subject to TSX Venture Exchange approval.
Li-FT Power Renard option fee released as final condition is satisfied
Li-FT Power (TSXV: LIFT, ASX: LFT) has received authorization from Québec’s Ministère des Ressources naturelles et des Forêts (MRNF) to postpone rehabilitation and restoration work at the Renard mining site until June 23, 2028. That authorization was the sole remaining condition for releasing the C$12 million Option Fee, paid in cash under the Renard option agreement.
The Monitor, Deloitte Restructuring Inc., will now release the Option Fee to secured creditors, in accordance with the order of the Superior Court of Québec that approved the Option Agreement. The binding call option agreement is dated June 23, 2026, and the release follows the company’s earlier news releases of June 24 and July 14, 2026.
For investors, a key regulatory hurdle is now cleared, and LIFT’s option position over Renard is no longer waiting on this condition. The company also announced an engagement with i2i Marketing Group, covered further below.
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What does the Renard option give LIFT?
Option terms
The Option Agreement grants LIFT a “sole and exclusive call option” to acquire the assets comprising the Renard diamond mine, processing facility and associated infrastructure. Alternatively, LIFT may acquire all issued shares of Stornoway Diamonds (Canada) Inc. (the 100% owner of Renard) or of 11272420 Canada Inc. (the 100% owner of Stornoway).
A call option is the right, but not the obligation, to buy an asset at a set price. Here, that price is nominal.
| Term | Detail |
|---|---|
| Exercise price | C$1.00 |
| Option Period | Two-year period ending June 23, 2028, unless extended by the parties |
| C&M Costs | LIFT solely responsible, estimated at C$18 million annually |
| Approvals required | Acquisition Agreement, Court approval under the CCAA Proceedings, and all required regulatory approvals |
Use of the Option Period
According to the company, the Option Period will be used to:
- Confirm the technical, economic, environmental and social feasibility of repurposing Renard for lithium processing.
- Determine the optimal Transaction structure.
- Negotiate definitive acquisition agreements.
Costs and conditions
Care and maintenance costs (C&M Costs) cover keeping the Renard site in good order. They are estimated at C$18 million annually and are LIFT’s sole responsibility during the Option Period.
In connection with satisfying the release condition, LIFT advanced C$18 million to the Monitor, which administers and disburses the funds against a care and maintenance budget reviewed by LIFT. This is separate from the C$12 million Option Fee, which has already been paid.
If LIFT decides to exercise the Option, it will assume full responsibility for closure and remediation of the Renard mine site. Any acquisition remains subject to negotiation and execution of an Acquisition Agreement, Court approval of that agreement under the Companies’ Creditors Arrangement Act (CCAA) Proceedings, and all required regulatory approvals.
Prior approval of the TSX Venture Exchange is required for any material changes to the proposed Acquisition Agreement terms from those outlined in the Option Agreement.
Why does Renard matter for a lithium developer?
Repurposing a mine site
LIFT is focused on developing hard rock lithium assets in Canada, including the Adina Lithium Project in Québec and the Yellowknife Lithium Project in the Northwest Territories. Hard rock lithium is mined from rock rather than extracted from brine.
A processing plant crushes and treats mined ore to produce a concentrate that can be sold. Existing infrastructure may shorten the path to production, but that depends on the feasibility work still to be done.
The company points only to the potential for the Renard process plant to process spodumene pegmatite ore from Adina. Feasibility has not been established, and the company lists the risk that the economic viability of the Transaction may not be established during the Option Period.
Infrastructure snapshot
Renard first produced diamonds in 2016 and entered care and maintenance in October 2023. Its infrastructure includes:
- A fully covered 2.2 Mtpa processing facility
- A 16 MW LNG-fired power station
- A 330-bed camp
- The on-site Clarence and Abel Swallow Airport, tailings and water management infrastructure, and a maintenance shop
- Permanent all-season road access to Chibougamau, which is connected by road and rail to the critical mineral and EV battery supply chain hub in Bécancour
Renard sits approximately 60 km south of the Adina Lithium Project and approximately 400 km north of a national railway connection at Chibougamau.
LIFT engages i2i Marketing Group
LIFT also engaged i2i Marketing Group, LLC to provide corporate marketing and investor awareness services. These include content creation management, author sourcing, project management and media/print distribution.
Under the agreement, LIFT will provide a minimum initial creation and media budget of US$1.4 million, payable in cash and non-refundable upon execution in several instalments. The term runs from October 5, 2026 until the budget has been fully expended, and either party may terminate on 10 days’ written notice.
i2i and its principals are arm’s length to the company and have no direct or indirect interest in LIFT or its securities. The agreement is subject to TSX Venture Exchange approval.
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What are the next steps for LIFT at Renard?
Before June 23, 2028, LIFT’s work centres on feasibility studies, structuring the Transaction and negotiating definitive agreements. If the Option is exercised, Court approval under the CCAA Proceedings and the required regulatory approvals, including TSX Venture Exchange approval where applicable, will be needed.
The announcement lists the company’s ability to secure financing for C&M Costs and any future transaction consideration as a forward-looking risk, but it does not detail how that financing will be arranged.
The takeaway for you: the Option Fee release removes one condition, but feasibility, financing and approvals all remain open.
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