PERTH (miningweekly.com) – Lithium hopeful Sayona Mining is looking to raise A$4.3-million through a one-for-four renounceable rights issue, priced at 8c a share.
The offer price represented a discount of 34% to Sayona’s 30-day volume weighted average share price of 1.22c a share, and a 48% discount to its 90-day volume weighted average share price of 1.54c each.
Eligible shareholders who subscribe for the offer will also receive one free attaching listed option for every two new shares subscribed for, exercisable at 2c each within three years of issue.
Sayona MD Brett Lynch said on Thursday that the funds would be sued to support the company’s push to transform itself from explorer to producer.
“Sayona’s plans in Quebec are rapidly picking up speed as we advance our bid for North American Lithium (NAL) while also progressing approvals for our flagship Authier lithium project.”
“The opportunity in front of us is compelling and these funds will put us in an excellent position to deliver on our strategy for the benefit of all stakeholders,” he said.
Sayona has placed a bid on NAL, which halted spodumene production at its mine in February last year. The company is hoping to combine lithium produced at its own Authier project with the lithium from the NAL project, facilitating improvements in plant performance and economics.