Sayona Mining (ASX:SYA) and Piedmont Lithium (ASX:PLL) signed a definitive agreement to combine in an all-stock merger, according to a Tuesday filing with the Australian bourse.
Post-merger, ownership will be split 50-50 between Sayona and Piedmont shareholders on a fully diluted basis. Sayona, the ultimate parent entity, is seeking roughly AU$40 million via an unconditional institutional placement as part of the planned merger. About 1.25 billion new shares are on offer at an issue price of AU$0.032 apiece.
Upon closing, Sayona will also conduct a conditional placement for AU$69 million in MergeCo to Resource Capital Fund, the filing stated.
Meanwhile, Piedmont plans to raise another AU$40 million to fund the combined entity.
The merger is expected to close in the first half of 2025, subject to certain conditions, including shareholders' approval.
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