Sayona Mining, capitalised at $391 million on the ASX, has agreed terms to merge with the $349 million Piedmont Lithium. The deal will create an $850 million lithium player and consolidate the ownership of the North American Lithium (NAL) project in Quebec.
Fund managers said the combined entity is seeking to raise about $150 million, with Resources Capital Funds understood to have taken up half of the deal. Canaccord Genuity advised both camps and is the sole lead manager on the accompanying raise.
Under the terms of the Transaction, existing holders of Piedmont Lithium shares of common stock will receive Sayona ADSs corresponding to 527 Sayona ordinary shares for each Piedmont share of common stock held and existing holders of Piedmont Lithium CHESS Depository Interests will receive 5.27 Sayona Mining Limited ASX listed ordinary shares (instead of an ADS) for each Piedmont Lithium CDI held. The Transaction will result in an approximate 50% / 50% equity holding of shareholders of Sayona and Piedmont in MergeCo (on a fully diluted basis), prior to the Conditional Placement.