PERTH (miningweekly.com) – Lithium developer Sayona Mining will raise A$54.9-million in a share placement to advance its exploration efforts in Quebec.
The miner on Tuesday announced that it had entered into a subscription agreement with PearTree Securities for the issuance of more than 174.4-million shares, at a price of 31.5c each using the flow-through shares (FTS) provision under Canadian tax law.
The new shares will be issued under the company’s existing placement capacity, and settlement of the placement is expected on March 9.
“Sayona has made significant progress in developing the leading hard rock lithium resource base in North America, with the pending restart of production at North American Lithium (NAL) set to mark our progression from explorer to producer,” said MD Brett Lynch.
“This funding will provide an added boost to our expansion plans, with the FTS provisions allowing us to raise capital at a premium to the current share price, thereby minimising dilution for the benefit of our shareholders.”
Funds raised will go towards exploration and drilling work at Sayona’s Quebec assets, including follow-up drilling at priority targets. In addition to NAL, Sayona also holds the Authier lithium project and the emerging Tansim lithium project, in Quebec, as well as a 60% stake in the Moblan lithium project in the northern part of the region.