Sayona Mining (ASX:SYA) has provided an update on its proposed merger with Piedmont Lithium (NASDAQ:PLL, ASX:PLL) to create Elevra Lithium Limited. Significant progress has been made with regulatory approvals, including Investment Canada Act (ICA) approval, Hart-Scott-Rodino (HSR) Act approval, and the completion of the Committee on Foreign Investment in the United States (CFIUS) review, all without objection. The transaction is targeted to close mid-CY2025, subject to shareholder approval from both companies and other customary conditions.
An Extraordinary General Meeting (EGM) is planned for Sayona shareholders in the first half of CY2025 to approve the transaction, a conditional placement of Sayona shares to Resource Capital Fund VIII, L.P. to raise approximately A$69 million at A$0.032 per share, a consolidation of Sayona shares at a ratio of 150:1, and the name change to Elevra Lithium. Following the share consolidation, Sayona intends to list American Depositary Shares (ADS) on the Nasdaq at a ratio of 10:1.
The proposed share consolidation aims to reduce the number of shares on issue and achieve a higher share price, which the company believes will be more attractive to a broader set of investors. Based on the share price on April 22, 2025, (A$0.017) and the AUD:USD exchange rate (0.64), the indicative ADS price post-transaction would be approximately US$16.32. The company clarified that it intends to proceed with the consolidation regardless of whether the merger completes.
Sayona Managing Director and CEO Lucas Dow expressed confidence that Elevra Lithium will emerge as a leader in the sector, well-positioned to contribute to the global energy transition. Shareholders are urged to review the forthcoming notice of meeting and explanatory memorandum for further details. The U.S. Securities and Exchange Commission (SEC) is currently reviewing the proxy statement/prospectus. Further information can be found on the company’s website.
