Piedmont Lithium (ASX:NASDAQ:PLL, OTC:PLLTL) Inc has boosted its balance sheet on selling its remaining shares in lithium producer Sayona Mining for gross proceeds of approximately A$59.9 million (US$39.4 million).
The share sale has no impact on the company’s joint venture or offtake agreement with Sayona Quebec which holds the North American Lithium operation in Quebec.
Piedmont, a leading global supplier of lithium resources critical to the US electric vehicle supply chain, has agreed to sell 1,152.2 million shares of Sayona for A$0.052 per share through a secondary block sale via Canaccord Genuity (TSX:CF, LSE:CF).
The sale price represents a premium to the 20-day volume weighted average price of Sayona shares.
Piedmont Lithium president and CEO Keith Phillips said: “This transaction underscores our commitment to delivering long-term value for Piedmont shareholders.
“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.
Committed to JV
"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 US electric vehicle supply chain.”
Following the transaction and some smaller recent public market share sales, Piedmont will no longer hold any shares of Sayona.
The decision to divest the Sayona shares aligns with the company’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 the company for the long term.