Piedmont Lithium and Sayona Mining have signed a definitive agreement to combine the two companies and create a leading North American lithium business. Sayona will be the ultimate parent entity.
“This merger combines two complementary businesses and will 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 [North American Lithium],” said Piedmont Lithium President and CEO Keith Phillips.
“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. MergeCo will be domiciled in Australia, but will maintain a listing on Nasdaq and a strong commitment to our Carolina Lithium project and our U.S. headquarters in Belmont, North Carolina.”
The transaction will result in an approximate 50%/50% equity holding of shareholders of Piedmont and Sayona (on a fully diluted basis) in MergeCo. Piedmont will be undertaking a proposed capital raise of US$27 million, while Sayona is undertaking A$40 million. Sayona will also undertake a conditional placement for A$69 million in MergeCo to Resource Capital Fund VIII.
Upon completion of the merger, Sayona CEO and Managing Director Lucas Dow will become the chief executie and managing director of MergeCo and Keith Phillips will become a strategic advisor to MergeCo for a transition period.
The transaction is expected to close in the first half of 2025.
Source: Piedmont Lithium