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.
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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.
