A day after it was announced Sayona Mining and Piedmont Lithium would merge, the latter has successfully closed a bookbuild for its $US27 million ($41.5 million) placement, in a bid to accelerate growth for the merged entity’s combined portfolio.
The placement is being undertaken at an offer price of $0.168 per new CHESS depository interest (CDI), representing a beneficial interest in one 100th of a common stock share in Piedmont.
The new CDIs are expected to be settled on November 27 and commence ASX trading on November 28. Once issued, they will rank equally with existing Piedmont CDIs.
“The placement bookbuild was strongly supported by a key group of high-quality investors which is a strong endorsement of the proposed merger combination with Sayona,” Piedmont president and chief executive officer (CEO) Keith Phillips said.
“The placement will ensure Piedmont has significant balance sheet strength as the company completes its proposed merger with Sayona and provides additional capital flexibility to continue to progress value-accretive initiatives across the project suite.”
Sayona has also received firm commitments for its $40 million fully underwritten unconditional placement, which is made up of approximately 1.25 billion new fully paid Sayona shares.
The placement was conducted at an offer price of $0.032 per share, representing an 8.7 per cent discount to the five-day volume-weighted average price of $0.035 up to and including November 18.
Sayona will also undertake a conditional placement to raise $69 million through the issuing of approximately 2.16 billion new shares in the merged entity at the same price as its unconditional placement.
The new shares to be issued under Sayona’s conditional placement and unconditional placement will rank equally with existing fully paid ordinary Sayona shares, and the new shares under both placements are expected to settle on November 27 and in the first half of 2025.
“We are very pleased with the level of support shown by high quality investors, with the strong demand received representing a clear endorsement of the proposed merger combination,” Sayona managing director and CEO Lucas Dow said.
“By combining with Piedmont and delivering a well-supported financing package, we are creating a premium global lithium hardrock production and development business.
“The equity raising will ensure the combined entity has significant balance sheet strength and flexibility and will enable the merged business to progress value-accretive growth opportunities across its diverse project suite.”
If this merger is successful, it will create the largest hard-rock lithium producer in the US.