PERTH (miningweekly.com) – Lithium miner Sayona Mining has completed the bookbuild for its A$200-million underwritten placement, priced at 18c each.

The company earlier this month announced the fully underwritten two-tranche placement to professional and sophisticated investors to expedite the development of Sayona’s emerging northern Québec lithium hub, centred on its Moblan lithium project, where a 60 000 m drilling campaign is currently underway.

Funding will also support the expedited mine development studies of the North American Lithium (NAL) operations, assessment of downstream options including lithium carbonate production, and associated infrastructure planning. Additional spending is also anticipated on project infrastructure, with NAL forming the centre of Sayona’s Abitibi lithium hub.

Furthermore, funding will be allocated towards drilling and assessment of the company’s lithium and gold exploration portfolio in Western Australia’s highly prospective Pilbara region, including maiden drilling at the Mt Dove gold project, the closest Sayona lease to the Hemi discovery, and at the Tabba Tabba lithium project. The remaining funds will be used for working capital purposes, including corporate development and transaction costs.

Some 1.11-billion shares will be placed, with the first tranche consisting of more than 940-million shares to raise an initial A$169-million under Sayona’s existing placement capacity. A further 170.7-million shares, raising a further A$31-million, will be issued subject to shareholder approval at a meeting scheduled for July 14.

“The success of this capital raise highlights the market’s confidence in our strategy and we are delighted to welcome a number of new institutional investors to the register, together with receiving strong support from existing investors and management,” Sayona MD Brett Lynch said on Tuesday.

“This funding will speed the growth of our resource base and bring extra tonnes to the market more quickly, as we continue our advance towards becoming North America’s first vertically integrated lithium producer.”

The settlement date of tranche one of the placement is June 5, with tranche one placement shares expected to be allotted on June 6. Tranche two placement shares will settle on July 19 and allot on July 20, subject to shareholder approval.