Sayona Mining Secures $40 Million in Equity Placement, Moves Forward with Merger

North American lithium producer Sayona Mining Limited has secured firm commitments for a $40 million fully underwritten unconditional placement. The placement, announced on November 19, involves approximately 1.25 billion new fully paid ordinary shares issued at A$0.032 per share, representing an 8.7% discount to the recent five-day volume-weighted average price.

The placement received strong support from institutional and sophisticated investors, and is part of Sayona's efforts to strengthen its financial position as it moves ahead with a definitive merger agreement with Piedmont Lithium Inc. The merger, if completed, will combine the two companies into a leading lithium producer, with Sayona becoming the ultimate parent entity.

The placement will proceed regardless of whether the merger closes, with new shares being issued under Sayona's existing capacity in compliance with ASX Listing Rule 7.1. The funds raised are intended to support the company's growth initiatives and strengthen its balance sheet.

In addition to the unconditional placement, Sayona is also pursuing a conditional placement to Resource Capital Fund VIII L.P. (RCF VIII) to raise an additional $69 million (approximately US$45 million). This conditional placement will require shareholder approval at an extraordinary general meeting expected in the first half of 2025.

The merger with Piedmont Lithium and the accompanying equity raises are seen as crucial steps for Sayona's expansion strategy. Lucas Dow, Managing Director of Sayona Mining, stated, "The strong investor support reflects confidence in our proposed merger with Piedmont and in our future growth strategy. The combined entity will be well-positioned to advance significant lithium projects, providing a premium global platform for lithium hardrock production and development."