EQUITY INVESTMENTS IN UNCONSOLIDATED AFFILIATES

3 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

EQUITY INVESTMENTS IN UNCONSOLIDATED AFFILIATES

On August 31, 2021, we entered into a strategic partnership with IronRidge Resources, Limited (“IRR”) by acquiring an equity interest of approximately 10% in IRR for $15,949,288. As part of our strategic partnership, we entered into a long-term supply agreement whereby IRR will sell 50% of spodumene concentrate produced in Ghana to Piedmont Lithium, subject to the Company exercising our ability to acquire an equity interest of 50% in IRR’s lithium-based portfolio in Ghana through expected future staged investments totaling approximately $87 million. Based on the relevant factors of the agreement, management concluded that we have significant influence over IRR and its operating and financial interests, but not a controlling financial interest, as defined in ASC Topic 323, “Investments—Equity Method and Joint Ventures.” Accordingly, management recorded this investment interest under the equity method in accordance with ASC 323. Our share of the income or loss from IRR is recorded on a one quarter lag.

We account for our existing investments in Sayona Mining Limited (“Sayona”) and Sayona Quebec Inc. (“Sayona Quebec”) as equity method investments. Our ownership interests in Sayona and Sayona Quebec enable us to influence the operating and financial decisions of both companies, but we do not have a controlling financial interest in either company. Our share of the income or loss from Sayona and Sayona Quebec is recorded on a one quarter lag.

On August 30, 2021, Sayona Quebec acquired substantially all of the assets of North American Lithium Inc. for CAD 97.9 million ($77.8 million). We paid CAD 24.5 million ($19.5 million) to Sayona Quebec, representing our 25% equity interest contribution, and Sayona paid CAD 73.4 million ($58.3 million), representing Sayona’s 75% equity interest contribution, which collectively gave Sayona Quebec the ability to fund the purchase of North American Lithium Inc.’s assets.

On August 20, 2021, we invested AUD 9.8 million ($7.0 million) in equity offerings by Sayona. Our equity interest in Sayona, including the additional shares acquired, was approximately 19% on September 30, 2021. Our additional investment in Sayona was proportional to additional investments made by other Sayona shareholders; therefore, our investment ownership percentage did not materially change.

We did not have equity investments in unconsolidated affiliates in the three months ended September 30, 2020. The following table summarizes the carrying amount, including changes therein, of our equity method investments in the three months ended September 30, 2021:



	Sayona Mining Limited		Sayona Quebec Inc.		IronRidge Resources Limited		Total equity investments in unconsolidated affiliates
Balance at beginning of period	$	11,194,905	$	5,067,593	$	—	$	16,262,498
Initial investment(1)	—		—		15,949,288		15,949,288
Additional investment(2)	7,183,273		19,449,545		—		26,632,818
Loss from equity method investments	(374,151)		(36,387)		—		(410,538)
Share of income from equity method investments included in other comprehensive loss	105,263		—		—		105,263
Balance at end of period	$	18,109,290	$	24,480,751	$	15,949,288	$	58,539,329

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(1)Initial investment includes transaction costs of $90,856 for the three months ended September 30, 2021.

(2)Additional investment includes transaction costs of $150,465 for the three months ended September 30, 2021.