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Highlights:
Sayona and Piedmont Lithium announce a merger, with Sayona becoming the parent entity of the new company.
The merger will result in a 50:50 equity split between Sayona and Piedmont shareholders in the combined entity.
Capital raises totaling approximately $171 million, including a $69 million placement to Resource Capital Fund, will strengthen the financial position of the merged entity.
ASX-listed lithium producers Sayona Mining Limited (ASX:SYA) and Piedmont Lithium Inc. have signed an agreement to merge, with Sayona set to become the parent company of the newly formed entity. This strategic move will create the largest hard rock lithium producer in North America, positioning the combined company to meet the growing global demand for lithium products.
The merger will result in an equal 50:50 equity distribution between Sayona and Piedmont shareholders in the new entity, which will be domiciled in Australia but retain a Nasdaq listing. Both companies will each raise approximately $40 million to support the transaction and accelerate growth initiatives. Upon completion, Sayona will also execute a conditional $69 million placement to Resource Capital Fund (RCF) VIII, further strengthening the merged entity’s balance sheet.
Additionally, the merged company may pursue an additional $22.5 million capital raise targeted at non-institutional shareholders, ensuring continued funding to advance its portfolio of lithium assets. The resulting entity, with a market capitalization estimated at $931 million, will be well-positioned to leverage its combined resources and expertise in the lithium sector.
The merger is subject to shareholder and regulatory approvals, and is expected to close in the first half of 2025. Sayona's current Managing Director and CEO, Lucas Dow, will take on the role of Managing Director and CEO of the merged entity, while Piedmont’s Keith Phillips will transition to a strategic advisory role for up to six months following the merger.
“This 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,” said Lucas Dow. Keith Phillips added, “The merger financing, supported by RCF, will enable us to weather the current industry downturn while positioning the company for recovery in the lithium markets.”
The combined entity aims to drive growth through the continued development of its extensive lithium resource base, including projects in Quebec and North Carolina. The merger enhances both companies' ability to capitalize on the long-term opportunities within the electric vehicle and energy storage markets.
