PERTH (miningweekly.com) – Lithium hopeful Sayona Mining has secured A$2.75-million in funding from US investor Obsidian Global GP.
The funding will include an initial A$1-million tranche of convertible notes, with the notes priced at $1 each, and having a face value of $1.10 each. The notes will not accrue any interest, and will have a 12-month maturity date.
Additional convertible notes to raise a further A$1.75-milion will be subject to shareholder approval.
“We are delighted to welcome Obsidian Global as a new investor at this crucial stage in the company’s development,” said Sayona MD Brett Lynch.
“The upturn in Sayona’s market value and trading activity since the start of the new year reflects increased investor confidence, not only in our company but the lithium sector as a whole, and we are determined to build on this momentum in 2020.”
Lynch said that with the upcoming potential re-rating catalysts, including Sayona’s bid for the North American Lithium (NAL) operation, as well as the advancement of the Authier project’s regulatory approval process and the development of the nearby Viau-Dallaire prospect, there was enormous potential for increased market value, providing benefits to stakeholders.