Li-FT Power (ASX:LFT) entered into a binding call option agreement granting it exclusive rights to acquire the Renard diamond mine and processing facility in Quebec, according to an Australian bourse filing on Wednesday after market hours.

The acquisition could be completed through an asset purchase or by acquiring the shares of Stornoway Diamonds, the 100% owner of Renard, or its parent company, 1127 Canada, subject to court approval under Canada's Companies' Creditors Arrangement Act proceedings, per the filing.

Renard's existing 2.2 million tonnes per annum processing plant and more than CA$900 million in prior investment could be leveraged to process ore from the company's Adina Lithium Project, reducing capital costs, development risk, and environmental impact, the filing said.

The company will pay a CA$12 million option fee and cover site care-and-maintenance expenses during a two-year option period, during which it will carry out technical, economic, environmental, and social assessments before making a final acquisition decision.

The transaction remains subject to multiple regulatory, court, and financing-related conditions, the filing added.