Piedmont Lithium and Sayona Mining Merge to Form North America's Largest Lithium Producer

Piedmont Lithium and Sayona Mining Announce Merger

Sayona Mining Limited (SYA.AX, SYAXF) and Piedmont Lithium Inc. (PLL, PLL.AX) announced today that they have entered into a binding agreement to merge, creating the largest lithium producer in North America. The combined company will have a market capitalization of approximately $1.2 billion and will be well-positioned to meet the growing demand for lithium, a critical mineral used in electric vehicles and other clean energy technologies.

Transaction Details

Under the terms of the agreement, Sayona Mining will acquire all of the issued and outstanding shares of Piedmont Lithium through a scheme of arrangement. Shareholders of Piedmont will receive 0.635 Sayona shares for each Piedmont share they own, implying a transaction value of approximately C$1.2 billion (A$1.3 billion). The merger is expected to close in the first half of 2023, subject to shareholder and regulatory approvals.

Benefits of the Merger

The merger will create a global lithium powerhouse with a diversified portfolio of high-quality lithium assets in North America and Australia. The combined company will have a strong balance sheet and access to significant capital to fund future growth. The merger will also allow the combined company to leverage Sayona's technical expertise and Piedmont's development experience to accelerate the development of its lithium projects.

Increased Production Capacity

The merger will significantly increase the combined company's lithium production capacity. Piedmont's flagship Carolina Lithium project in North Carolina is expected to produce approximately 30,000 tons of lithium hydroxide per year, while Sayona's Moblan project in Quebec is expected to produce approximately 110,000 tons of lithium hydroxide per year. The combined company will have the capacity to produce approximately 140,000 tons of lithium hydroxide per year, making it the largest lithium producer in North America.

Diversified Asset Portfolio

The merger will create a diversified portfolio of lithium assets across different jurisdictions. Piedmont's assets are located in North Carolina, Tennessee, and Quebec, while Sayona's assets are located in Quebec, Western Australia, and Finland. This diversification will reduce the combined company's exposure to geopolitical risks and ensure a stable supply of lithium.

Strong Financial Position

The combined company will have a strong financial position with approximately $250 million in cash and available liquidity. This financial strength will allow the combined company to fund future growth projects and capitalize on strategic opportunities.

Conclusion

The merger between Piedmont Lithium and Sayona Mining is a major development in the lithium industry. The combined company will be the largest lithium producer in North America and will be well-positioned to meet the growing demand for lithium. The merger will create a global lithium powerhouse with a diversified portfolio of high-quality lithium assets, a strong balance sheet, and access to significant capital. The combined company will be well-positioned to capitalize on the growing demand for lithium and play a major role in the transition to a clean energy future.