Piedmont Lithium, a North American supplier of lithium products, and Sayona Mining signed a definitive agreement to combine the two companies to create a leading lithium business, resulting in Sayona being the ultimate parent entity.
The transaction will result in an approximate 50% / 50% equity holding of shareholders of Piedmont and Sayona (on a fully diluted basis) in the new merged company immediately following the closing of the transaction.
Piedmont will be undertaking a proposed capital raise of ~US$27 million. Sayona is undertaking a capital raise of A$40 million (~US$27 million). Completion of the transaction is subject to shareholder approval for both companies and is expected to close in the first half of CY2025.
According to the two companies, a combination between Piedmont and Sayona will create a simpler and stronger lithium business that is well-positioned to grow through cycles. The combination delivers scale, optimization and growth potential by creating the largest producer of hard-rock lithium in North America.
A significant combined lithium Ore Reserve estimate totals 70.4Mt @ 1.15% Li2O and Mineral Resource estimate totaling 153.5Mt @ 1.15% Li2O (Measured and Indicated) and 51.4Mt @ 1.07% Li2O (Inferred).
