The all-stocks merger will see both parties take 50% ownership of a new company worth an estimated US$623M. 

Sayona Mining and Piedmont Lithium have reported that the two companies entered into an all-stocks merger, combining their assets within the lithium industry under a new jointly owned company.  Sayona and Piedmont will each hold a 50% ownership of the new company, which will combine the two companies’ existing joint operations at the North American Lithium (NAL) operation and Authier projects in Canada in addition to the two companies’ solely held lithium interests.  These include Piedmont Lithium’s interests in the Carolina Lithium and Ewoyaa projects in the USA and Ghana respectively, and Sayona Mining’s interest in the Moblan project in Canada.   

The new company is expected to be worth US$623M.  To fund the acquisition of the necessary shares, Sayona will look to raise A$40M (US$26.04M) via a capital raise and a further A$69M (US$44.8M) via a conditional placement with Resource Capital Funds. Piedmont is also expected to issue shares worth US$27M as part of the all-stock purchase.         

The combination of both Sayona’s and Piedmont’s lithium asset suite is expected to form a new company with a potential capacity of 593ktpy spodumene concentrate (6.0% Li2O), containing roughly 76ktpy LCE-in-concentrate.  This would place them in the top five lithium mineral producers if capacity was available in 2024, or within the top ten lithium mineral producers in 2034 based on expected capacity development.