The merger of ASX-listed Sayona Mining and Piedmont Lithium has made progress, now targeting a mid-2025 completion date.
Originally announced in November, the merger is set to create the largest hard-rock lithium producer in the US.
The transaction will result in an approximate 50:50 equity holding for Sayona and Piedmont shareholders on a fully diluted basis following the deal’s closing.
The deal has received regulatory approval under the Investment Canada Act and the US’ Hart-Scott-Rodino Antitrust Improvements Act of 1976. The Committee on Foreign Investment in the US has completed its review with no further action to be taken.
The acquisition remains subject to Sayona and Piedmont shareholder approval, with the former to conduct an extraordinary general meeting to get the transaction itself approved and to change the merged entity’s name to Elevra Lithium.
Sayona shareholders will vote to approve a conditional placement worth approximately $69 million at $0.032 per Sayona share to fund the acquisition, and to consolidate Sayona shares at a ratio of 150:1.
Sayona said the amendment “will result in a reduced number of shares on issue and a proportionally higher share price that we believe is in line with investor expectations and that we expect will be attractive to a broader set of investors”.
“This merger represents an exciting new chapter for our companies, our shareholders, and the broader lithium industry,” Sayona managing director and chief executive officer Lucas Dow said.
“We are confident that Elevra Lithium will emerge as a leader in the sector, well-positioned to contribute to the global energy transition. I encourage all stakeholders to support the merger ensuring that we capitalise on the significant opportunities ahead.”