Sayona Mining (ASX:SYA) and Piedmont Lithium (ASX:PLL) have announced an all-stock merger, and will form North America's largest producer of hard rock lithium. This deal will see the two companies combine resources, creating a new entity, “MergeCo”, with a 50/50 ownership split immediately following the transaction.
The merger aims to simplify corporate structures, improve economics for the companies' North American Lithium (NAL) operations, and accelerate growth projects. Key synergies include optimised logistics, procurement, and expanded customer relationships.
Under the terms of the merger, Piedmont Lithium shareholders will exchange their shares for Sayona equity. Holders of Piedmont's common stock will receive Sayona American Depositary Shares (ADSs) equivalent to 527 Sayona ordinary shares for each Piedmont share. Meanwhile, Piedmont's CHESS Depositary Interest (CDI) holders will receive 5.27 Sayona ordinary shares for each CDI held. These transactions will result in Piedmont shareholders collectively owning 50% of the newly formed MergeCo, with the remainder owned by Sayona shareholders.
Lucas Dow, CEO of Sayona, commented: “This merger marks a transformative step, creating a leading North American lithium producer with the scale and capabilities to meet growing demand.” Keith Phillips, CEO of Piedmont Lithium, added: “This merger combines two complementary businesses, enabling investments that position us for the recovery in lithium markets.”
Sayona Mining, headquartered in Brisbane, Australia, focuses on lithium mining and exploration, with projects in Québec, Canada, and Western Australia. Its flagship North American Lithium operation in Québec is complemented by projects like Authier and Tansim.
Piedmont Lithium, based in Belmont, North Carolina, is a developer of lithium resources, primarily in the United States. Its Carolina Lithium Project is a key asset in the burgeoning electric vehicle supply chain, with Piedmont also holding interests in Canadian and Ghanaian lithium projects.
MergeCo will hold an extensive portfolio of lithium resources, with combined reserves and resources of 275 million tonnes across multiple sites. The consolidated entity plans to optimise downstream strategies, leveraging significant resource bases for future expansion. The merger will also strengthen the balance sheet through a combined A$149m capital raising, ensuring funding for upcoming projects, including a potential brownfield expansion of NAL.
The merger is expected to close in the first half of 2025, pending shareholder and regulatory approvals. MergeCo will retain its primary ASX listing while maintaining a Nasdaq secondary listing.
