Piedmont Lithium and Sayona Mining to Merge

Business Wire
24 min read

In This Article:

Creates a leading North American lithium producer and developer

  • Piedmont and Sayona to combine in all-stock merger with ownership split of approximately 50% / 50% on a fully diluted basis immediately post-merger and prior to the conditional equity raising

  • Creating a leading North American hard rock lithium producer with geographically advantaged spodumene resources of global scale

  • Simplified corporate structure aligns North American Lithium ("NAL") offtake economics, and removes contractual complexities

  • Unified ownership of NAL unlocks the potential for a significant brownfield expansion

  • Combined scale provides strategic flexibility to combine and optimize downstream strategies

  • Material corporate, logistics, marketing, and procurement synergies

  • Significantly strengthened balance sheet with two stage equity financing, with post-merger raise led by cornerstone subscription from Resource Capital Fund VIII L.P. ("RCF VIII"), associated with Resource Capital Funds ("RCF"), a critical minerals and mining-focused global investment firm

  • MergeCo will endeavor to complete an additional equity raise for eligible retail shareholders post-closing

BELMONT, N.C., November 19, 2024--(BUSINESS WIRE)--Piedmont Lithium Inc. ("Piedmont" or the "Company") (NASDAQ: PLL; ASX: PLL), a leading North American supplier of lithium products critical to the U.S. electric vehicle supply chain, and Sayona Mining Limited ("Sayona") (ASX: SYA) announce the signing of a definitive agreement (the "Merger Agreement") to combine the two companies to create a leading lithium business, resulting in Sayona being the ultimate parent entity ("MergeCo") (the "Transaction").

The Transaction will result in an approximate 50% / 50% equity holding of shareholders of Piedmont and Sayona (on a fully diluted basis) in MergeCo 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). Upon closing of the Transaction, Sayona will also undertake a conditional placement ("Conditional Placement") for A$69 million in MergeCo to Resource Capital Fund VIII L.P. ("RCF VIII"). The placement is subject to completion of the Transaction and requisite Sayona shareholder approval and other conditions. The equity raisings, aggregating to approximately US$99 million, plan to ensure MergeCo is well positioned to accelerate growth within its enlarged portfolio.

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