Sayona Mining (ASX:SYA) and Piedmontese lithium (ASX:PLL) have announced an all-stock merger and will form the largest hard rock lithium producer in North America. This deal will see the two companies pool 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 optimized logistics, sourcing and expanded customer relationships.
Under the terms of the merger, Piedmont Lithium shareholders will exchange their shares for shares of Sayona. Holders of Piedmont ordinary shares will receive Sayona American Depositary Shares (ADS) equivalent to 527 Sayona ordinary shares for each Piedmont share. Meanwhile, holders of Piedmont CHESS Depository Interests (CDIs) will receive 5.27 shares of Sayona common stock for each CDI held. These operations will lead the Piedmontese shareholders to collectively own 50% of the newly formed MergeCo, while the remaining part will be owned by the 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 brings together two complementary businesses, enabling investments that position us for the recovery of lithium markets.”
Sayona Mining, based in Brisbane, Australia, focuses on lithium mining and exploration, with projects in Quebec, Canada and Western Australia. Its flagship North American lithium activity in Quebec is complemented by projects such as 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 a large portfolio of lithium resources, with combined reserves and resources of 275 million tonnes across multiple sites. The consolidated entity plans to optimize downstream strategies, leveraging significant asset bases for future expansion. The merger will also strengthen the balance sheet through a combined capital raising of A$149 million, securing funding for upcoming projects, including a potential expansion of NAL’s brownfields.
The merger is expected to close in the first half of 2025, pending shareholder and regulatory approvals. MergeCo will maintain its primary listing on the ASX while maintaining a secondary listing on the Nasdaq.