06:24 AM EST, 11/19/2024 (MT Newswires) -- Piedmont Lithium ( PLL ) and Sayona Mining said late Monday that they would combine the two companies to create a leading lithium business, with Sayona serving as the ultimate parent entity.

The companies said the merger would result in a 50/50 equity split Piedmont and Sayona shareholders.

Piedmont plans a $27 million capital raise, while Sayona will raise 40 million Australian dollars ($26 million), the companies said, adding that on close, Sayona will also make a conditional A$69 million placement in the merged company to Resource Capital Fund VIII.

The merger is subject to shareholder approval by both companies and is slated to be completed in the first half of next year.