Guess which ASX lithium company is the biggest holder of Sayona Mining shares?

Sayona Mining Ltd (ASX: SYA) shares have become an ASX lithium staple, particularly after the company was added to the iconic S&P/ASX 200 Index (ASX: XJO) last month.

With its popularity apparently growing, prospective investors might be surprised to learn another ASX lithium share has beaten them to the punch.

Piedmont Lithium Inc (ASX: PLL) is currently Sayona Mining’s largest shareholder.

So, what drove one ASX lithium share to snap up a huge stake in its peer? Keep reading to find out.

The Sayona Mining share price closed Thursday’s session at 22 cents.

The ASX lithium share with a huge stake in Sayona Mining

There’s a simple reason behind Piedmont Lithium’s massive stake in Sayona Mining. The pair have partnered in a number of Canadian lithium projects.

Those projects include the North American Lithium (NAL) operation. The pair are working to kickstart lithium production at the operation, launching a pre-feasibility study earlier this month.  

But it was a different story back in early 2021. Then, NAL was just a twinkle in Sayona Mining’s eye as the company worked to develop several Canadian lithium projects.

That’s when the company caught US-focused lithium developer Piedmont Lithium’s attention. The pair signed a deal that would see Piedmont Lithium buy a 9.9% stake in Sayona Mining, with the option to receive another 10% through convertible notes, for up to $15.5 million.

Piedmont paid just 0.92 US cents for each Sayona Mining share it snapped up in January 2021. At that point in time, Sayona Mining shares were swapping hands for around 1 cent apiece.  

Piedmont also paid around US$5 million for a 25% stake in Sayona Québec.

Back to the present, Piedmont – which is also listed on the NASDAQ Index – holds around 1.19 billion Sayona Mining shares as of 12 October, according to the latter lithium favourite.

That represents around 14.3% of the company’s outstanding shares.

The post Guess which ASX lithium company is the biggest holder of Sayona Mining shares? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Challenger, Novonix, Piedmont Lithium, and Woodside shares are racing higher
• 3 ASX lithium stocks leaping higher on big news
• Piedmont Lithium share price shoots 12% higher on $226m US government grant
• If you’d bought $5,000 of Sayona Mining shares at the start of 2022, congratulations! Here’s what you’d have today
• Why are these ASX 200 lithium shares smashing it on Monday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/kEqTj16