Piedmont Lithium Sells Sayona Mining Shares
February 21 2024 - 5:50AM
Business Wire
Piedmont Lithium (“Piedmont” or the “Company”) (Nasdaq: PLL;
ASX: PLL), a leading global supplier of lithium resources
critical to the U.S. electric vehicle supply chain, today announced
the sale of the shares it held in Sayona Mining (“Sayona”) (ASX:
SYA).
The Company has agreed to sell 1,152.2 million shares of Sayona
for A$0.052 Australian Dollars (“A$”) per share through a secondary
block sale via Canaccord Genuity. The sale price represents a
premium to the 20-day volume weighted average price and will result
in gross proceeds of approximately A$59.9 million, or US$39.4
million for Piedmont. Following the transaction and some smaller
recent public market share sales, Piedmont will no longer hold any
shares of Sayona. The sale of these shares has no impact on
Piedmont’s joint venture or offtake position with Sayona
Quebec.
The decision to divest the Sayona shares aligns with Piedmont's
commitment to maintaining a prudent balance sheet while
simultaneously minimizing dilution of Piedmont’s shareholders. This
action, in addition to the cost-saving initiatives outlined in
Piedmont’s recent corporate update, strategically positions
Piedmont for the long term.
“This transaction underscores our commitment to delivering
long-term value for Piedmont shareholders," said Keith Phillips,
President and CEO of Piedmont Lithium. “We acquired our initial
Sayona shares as part of our strategic investment in the Sayona
Quebec joint venture and will recognize a meaningful gain on the
investment. We remain fully committed to our joint venture with
Sayona, with a particular focus on the ongoing ramp up of North
American Lithium, the largest lithium operation in North America.
Our 25% joint venture interest and associated offtake agreement are
core assets of Piedmont, and we look forward to continuing to work
closely with our partners at Sayona to supply IRA-qualified lithium
resources critical to the U.S. electric vehicle supply chain.”
About Piedmont Lithium
Piedmont Lithium Inc. (Nasdaq: PLL; ASX: PLL) is developing a
world-class, multi-asset, integrated lithium business focused on
enabling the transition to a net zero world and the creation of a
clean energy economy in North America. Our goal is to become one of
the largest lithium hydroxide producers in North America by
processing spodumene concentrate produced from assets where we hold
an economic interest. Our projects include our Carolina Lithium and
Tennessee Lithium projects in the United States and partnerships in
Quebec with Sayona Mining (ASX: SYA) and in Ghana with Atlantic
Lithium (AIM: ALL; ASX: A11). These geographically diversified
operations will enable us to play a pivotal role in supporting
America’s move toward energy independence and the electrification
of transportation and energy storage. For more information, follow
us on Twitter @PiedmontLithium and visit
www.piedmontlithium.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of or as described in securities legislation in the
United States and Australia, including statements regarding
exploration, development construction and production activities of
Sayona Mining, Atlantic Lithium and Piedmont; current plans for
Piedmont’s mineral and chemical processing projects; Piedmont’s
potential acquisition of an ownership interest in Ewoyaa; and
strategy. Such forward-looking statements involve substantial and
known and unknown risks, uncertainties, and other risk factors,
many of which are beyond our control, and which may cause actual
timing of events, results, performance or achievements and other
factors to be materially different from the future timing of
events, results, performance, or achievements expressed or implied
by the forward-looking statements. Such risk factors include, among
others: (i) that Piedmont, Sayona Mining or Atlantic Lithium may be
unable to commercially extract mineral deposits, (ii) that
Piedmont’s, Sayona Mining’s or Atlantic Lithium’s properties may
not contain expected reserves, (iii) risks and hazards inherent in
the mining business (including risks inherent in exploring,
developing, constructing and operating mining projects,
environmental hazards, industrial accidents, weather or
geologically related conditions), (iv) uncertainty about Piedmont’s
ability to obtain required capital to execute its business plan,
(v) Piedmont’s ability to hire and retain required personnel, (vi)
changes in the market prices of lithium and lithium products, (vii)
changes in technology or the development of substitute products,
(viii) the uncertainties inherent in exploratory, developmental and
production activities, including risks relating to permitting,
zoning and regulatory delays related to our projects as well as the
projects of our partners in Quebec and Ghana, (ix) uncertainties
inherent in the estimation of lithium resources, (x) risks related
to competition, (xi) risks related to the information, data and
projections related to Sayona Mining or Atlantic Lithium, (xii)
occurrences and outcomes of claims, litigation and regulatory
actions, investigations and proceedings, (xiii) risks regarding our
ability to achieve profitability, enter into and deliver product
under supply agreements on favorable terms, our ability to obtain
sufficient financing to develop and construct our projects, our
ability to comply with governmental regulations and our ability to
obtain necessary permits, and (xiv) other uncertainties and risk
factors set out in filings made from time to time with the U.S.
Securities and Exchange Commission (“SEC”) and the Australian
Securities Exchange, including Piedmont’s most recent filings with
the SEC. The forward-looking statements, projections and estimates
are given only as of the date of this press release and actual
events, results, performance, and achievements could vary
significantly from the forward-looking statements, projections and
estimates presented in this press release. Readers are cautioned
not to put undue reliance on forward-looking statements. Piedmont
disclaims any intent or obligation to update publicly such
forward-looking statements, projections, and estimates, whether as
a result of new information, future events or otherwise.
Additionally, Piedmont, except as required by applicable law,
undertakes no obligation to comment on analyses, expectations or
statements made by third parties in respect of Piedmont, its
financial or operating results or its securities.
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version on businesswire.com: https://www.businesswire.com/news/home/20240221080713/en/
For further information:
Erin Sanders SVP, Corporate Communications & Investor
Relations T: +1 704 575 2549 E: esanders@piedmontlithium.com
Christian Healy/Jeff Siegel Media Inquiries E:
Christian@dlpr.com E: Jeff@dlpr.com
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