Piedmont Lithium and Sayona Mining Announce Merger Plans
By: Wise News Network Staff
Belmont, NC (WNN)— Piedmont Lithium and Sayona Mining are joining together to create a new company called MergeCo. They officially agreed to the merger on November 18, 2024, at Piedmont’s office in Belmont, North Carolina. The goal of this merger is to combine their resources and become a stronger competitor in producing lithium. Here’s what it means based on their press release.
Stock Ownership and Equity Structure
A big part of the merger is that stock ownership will be split almost evenly between the two companies once the deal is finalized. They also plan to raise $99 million in U.S. dollars (about $1.53 million in Australian dollars) to help fund future projects and operations.
Timeline and Approvals
The merger is expected to close in the first half of 2025, pending shareholder and regulatory approvals. Shareholders will vote during a general meeting, and the merger must pass conditions set by U.S. and international regulators, including the Committee on Foreign Investment in the United States (CFIUS), the Hart-Scott-Rodino Act, and the Investment Canada Act.
Impact on Piedmont Shareholders
After the merger, Sayona Mining will take over as the main company and be based in Australia. Therefore, Piedmont shareholders will get shares in Sayona Mining in exchange. For example, if you own one share of Piedmont common stock, you’ll get about 527 shares of Sayona American Depository Shares. If you own a Piedmont CDI you’ll receive 5.27 shares of Sayona Mining Limited ASX listed ordinary shares per CDI.
Strategic Goals
The merger will bring together resources from both companies to create a bigger and more powerful lithium producer. This will help manage contracts better, boost production, and make shipping and delivery around the world easier.
Local Implications for Cherryville
The merger will keep Piedmont’s current contracts, including a 10-million-dollar deal with Cherryville, N.C. Cherryville City Manager Brian Dalton said the initial Piedmont Lithium payment of $1 million for recreation projects has already been spent. The $500,000 per year for 20 years will come when and if production begins at the Gaston County, NC, site with the first shipment of lithium hydroxide. No timeline has been given for this North Carolina project, which is estimated to cost 1.2 billion dollars. Piedmont Lithium reported cutting its workforce by 48% between February and October 2024 and now has approximately 25 employees.
Mineral Resources and Environmental Plans
After the merger, the new company will have access to a large amount of valuable materials, including over 150 million tons of confirmed resources and 50 million tons of potential resources. They also plan to clean up and reuse polluted land.
Offtake Agreements and Future Operations
The company has a deal with North Atlantic Lithium to supply a steady amount of spodumene concentrate to a plant in Quebec. This helps MergeCo streamline operations and grow its presence in the market.
Leadership Changes
Lucas Dow, CEO of Sayona Mining, will become CEO of MergeCo, while Piedmont’s CEO Keith Phillips will serve as a strategic advisor. The board will include representatives from both companies.
Equity Funding and Final Notes
MergeCo plans to raise $72 million and get $45 million more from an investment group to help pay for projects in North Carolina, Canada, and Australia. The merger has to be finished by September 30, 2025, or the side that causes delays could lose the right to back out.
Lithium prices have been dropping since peaking in December 2022. For more details on the merger, check Sayona Mining’s website or the Piedmont Lithium press release.
@WNN
For more WNN video news stories, visit YouTube: https://www.youtube.com/@wisenewsnetwork.
For more WNN articles and news stories, visit: https://wisenewsnetwork.com
Contact WNN at [email protected]
Copyright 2024 Wise News Network. All rights reserved.
