A definitive agreement between ASX-listed Sayona Mining and Piedmont Lithium will create a leading North American hard rock lithium producer.
The transaction will result in an approximate 50 per cent/50 per cent equity holding of Sayona and Piedmont Lithium shareholders in the yet-to-be-named company immediately following the transaction’s closing.
Sayona is undertaking a capital raise of approximately $40 million. It will also undertake a conditional placement for $69 million when the transaction closes. The conditional placement is subject to the transaction’s completion, requisite Sayona shareholder approval and other conditions.
Piedmont will also undertake a proposed capital raise of approximately US$27 million. The equity raisings, aggregating to approximately $149 million, plan to ensure the merged company is well-positioned to accelerate growth within its enlarged portfolio.
Sayona’s CEO and MD, Lucas Dow, said the merger marks a transformative step for Sayona and Piedmont, creating a leading North American lithium producer with the scale and capabilities to meet the growing demand for lithium products.
“We believe our combined resources and expertise will enable us to deliver significant value to our shareholders and stakeholders. We are excited about the opportunities this merger presents to accelerate our growth plans and enhance our strategic flexibility.”
Piedmont Lithium’s President and CEO, Keith Phillips, said the merger will combine two complementary businesses and create a larger and stronger company.
“MergeCo will be North America’s largest lithium producer and will have an attractive growth profile with three DFS-stage development projects and an exciting near-term brownfield expansion opportunity at NAL.
“The merger financing, corner-stoned by leading mining private equity group RCF, will enable us to weather the current industry downturn while making intelligent investments in our growth projects to be positioned for the recovery in lithium markets that we expect in the medium term.”
Mr Phillips said MergeCo will be domiciled in Australia but will maintain a listing on Nasdaq.
