Sayona announces massive cash drive for Moblan buy
PERTH (miningweekly.com) – Lithium developer Sayona Mining on Monday announced that it had raised some A$100-million through a share placement to global institutional, professional and sophisticated investors, to fund the purchase of a majority interest in the Moblan lithium project, in Quebec.
The ASX-listed company at the end of September struck an $86.5-million deal to acquire a 60% interest in the Moblan project after reaching an agreement with Lithium Royalty Corp.
Sayona on Monday revealed that it would place more than 689.4-million new fully paid ordinary shares, at an offer price of 14.5c each, to raise the A$100-million. The placement price represented a 17.1% discount to Sayona’s last closing price, and was nearly double the placement price for a July capital raise.
The shares will be placed under the company’s existing placement capacity, and do not require shareholder approval.
Sayona will also undertake a 1-for-35 non-renouceable rights issue to existing shareholders, to raise a further A$25.5-million at the same offer price.
The rights issue will close on October 25, unless extended.
“The Moblan acquisition represents a significant growth opportunity as we build a new lithium base in Northern Québec, adding to our existing Abitibi lithium hub,” said MD Brett Lynch.
“This is important as demand for lithium from North America continues to accelerate, as highlighted by Ford’s recent $11.4-billion dollar battery investment on top of its $30-billion investment in electric vehicles. Ford’s demand alone has the potential to exceed projected supply from all current North American projects in production by 2030.
“Sayona wants to be at the forefront in supplying this demand and now has both the means and the partners to make this happen.”
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