Australia's Sayona Mining (OTC:SYAXF) and U.S.-based Piedmont Lithium (NASDAQ:PLL) announced a merger.
The two companies intend to form North America's largest hard rock lithium producer.
The all-stock deal results from a 50-50 equity split, creating a strengthened entity capable of navigating the challenging lithium market. Pending approval by the shareholders and regulators, the transaction is expected to close in the first half of 2025.
Sayona will become the parent company based in Australia. Its primary listing will be on the ASX and a secondary listing on Nasdaq. Sayona CEO Lucas Dow will lead the merged entity. Piedmont CEO Keith Phillips will be a strategic advisor.
"This merger marks a transformative step for Sayona and Piedmont," Dow said, clarifying the potential for accelerated growth and improved strategic flexibility.
The combined company would benefit from three feasibility-stage development projects and the opportunity for brownfield expansion at the North American Lithium (NAL) facility in Quebec.
By consolidating ownership of NAL, the new entity will simplify corporate structures and unlock synergies, including cost savings from optimized logistics and procurement.
The two companies agreed on a merger following a prolonged lithium market downturn owing to oversupply and slower-than-anticipated electric vehicle adoption. Industry challenges have weighed on prices, but the combined company believes its enhanced scale and financial strength will provide resilience.
The new company will control considerable lithium resources, including ore reserves of 70.4 million tons at 1.15% lithium oxide and estimated resources of 153.5 million tons at 1.15% and 51.4 million tons at 1.07%.
Key assets include NAL in Quebec, the Carolina Lithium project in North Carolina, and spodumene assets in Ghana. Management noted the focus on accelerating NAL's brownfield expansion and advancing its other high-potential projects. Still, Sayona's Australian lithium holdings further diversify the portfolio, giving the company an advantage in serving global markets.
The lithium market experienced a severe crash after peaking at over $80,000 per ton in 2022. Still, despite persistent weakness, the market is showing signs of recovery after prices bottomed at $9,800 per ton.
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