Piedmont Lithium and Sayona Mining have entered a definitive agreement to merge their businesses, forming a unified lithium company under the parent entity, MergeCo. The merger positions the new entity as North America’s largest producer of hard rock lithium.
The transaction will result in an equal equity split between Piedmont and Sayona shareholders, with each group holding approximately 50% of MergeCo upon completion.
To support the merger, Piedmont plans to raise A$27 million ($17.57 million), while Sayona aims to raise A$40 million.
Additionally, Sayona will undertake a conditional placement of A$69 million in MergeCo to Resource Capital Fund VIII, contingent on shareholder approval and other conditions.
The combined capital raisings, totaling approximately $99 million, will bolster MergeCo’s growth strategy, allowing it to capitalize on its expanded asset portfolio. The merger, pending shareholder approval, is expected to be finalized in the first half of 2025.
Both companies have emphasized the merger’s potential to streamline operations and optimize scale. MergeCo aims to be well-positioned for growth across market cycles, supported by a robust portfolio, including three definitive feasibility study (DFS)-stage development projects and a near-term brownfield expansion opportunity at North American Lithium (NAL).
“This merger combines two complementary businesses, creating a larger and stronger company,” said Piedmont Lithium President and CEO Keith Phillips. “MergeCo will not only become North America’s largest lithium producer but will also be well-equipped to navigate current market challenges while strategically investing in growth projects for the anticipated recovery in lithium markets.”
Earlier this year, Piedmont Lithium sold a 1.15 billion-share stake in Sayona Mining for A$59.9 million, underscoring the companies’ ongoing collaboration.
The merged entity is expected to accelerate growth, optimize operations, and enhance its competitive edge in the rapidly evolving lithium market, driving significant value for shareholders and stakeholders.
