ASX-listed lithium producer Sayona Mining has divested about 19.2-million shares in TSX-listed Troilus Gold at C$0.63 a share through a block trade facilitated by Desjardins Capital Markets.
The transaction yielded gross proceeds of about C$12.1-million, which have been redirected towards the development of the Moblan lithium project and the expansion of operations at North American Lithium (NAL) in Québec, Canada.
This was a strategic decision by Sayona to bolster its financial position and focus on its core lithium projects, specifically the development of Moblan and the ongoing expansion of production at NAL.
Following this transaction and other recent public market sales, Sayona no longer retains any holdings in Troilus.
Sayona initially acquired shares in Troilus towards the end of 2022, as part of a transaction related to the acquisition of a significant land position near the Moblan lithium project.
This acquisition, totalling nearly 1 000 km2 of prospective land holdings, was executed through a nonbrokered private placement at an average price of C$0.49 a share.
As a result of this divestment, Sayona expects to see a modest capital gain.
“The sale of the Troilus shares is entirely consistent with our objective of maximising shareholder value through the development and operation of our Quebec lithium assets at Moblan and NAL.
“The initial investment in Troilus facilitated the acquisition of a significant exploration package adjacent to Moblan in the Eeyou Istchee James Bay Hub. Having achieved its intended purpose, it is prudent to reallocate the capital for alternative purposes,” Sayona interim CEO James Brown said.