Lithium Powerhouses Unite: Piedmont and Sayona Merge to Form Industry Giant
In a move set to revolutionize the lithium industry, Piedmont Lithium and Sayona Mining have announced a definitive agreement to combine their businesses, creating a leading lithium company with a strong growth profile. The transaction will result in an equal split of equity holdings between Piedmont and Sayona shareholders, each holding approximately 50% of the newly formed company, MergeCo.
A Strategic Union
The merger is expected to create a more streamlined lithium business, strategically poised for growth across various market cycles. By combining their complementary businesses, Piedmont and Sayona aim to deliver scale, optimization, and growth potential, establishing MergeCo as the largest producer of hard rock lithium in North America.
Capital Raise to Fuel Growth
To support the merger, Piedmont has proposed a capital raise of A$27m ($17.57m), while Sayona is set to raise A$40m. Additionally, Sayona will undertake a conditional placement worth A$69m in MergeCo to Resource Capital Fund VIII, contingent upon the transaction’s completion, shareholder approval, and other conditions. The combined equity raisings of roughly $99m will position MergeCo for accelerated growth within its expanded portfolio.
A Bright Future Ahead
The merger, subject to shareholder approval from both companies, is expected to be finalized in H1 2025. Piedmont Lithium president and CEO Keith Phillips expressed enthusiasm about the deal, stating that MergeCo will be North America’s largest lithium producer, with an attractive growth profile and three DFS-stage development projects. Furthermore, the merger financing, backed by leading mining private equity group RCF, will enable the company to weather the current industry downturn while making strategic investments in growth projects.
A History of Collaboration
This merger marks a significant milestone in the partnership between Piedmont Lithium and Sayona Mining, which began earlier this year when Piedmont agreed to sell a 1.15 billion-share stake in Sayona Mining for A$59.9m. With their combined expertise and resources, MergeCo is poised to become a dominant player in the lithium industry.
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