PERTH (miningweekly.com) – Lithium developer Sayona Mining has launched a A$20.4-million underwritten renounceable rights issue to support its bid for North American Lithium (NAL) and to progress key projects in Canada.
The company on Thursday said that the one-for-six renounceable entitlement issue would be priced at 3.2c a share, representing a 10.5% discount to the 30-day volume weighted average share price and a 15.7% discount to the theoretical ex rights price of 3.8c a share.
The rights issue will close on April 20, with the new shares to start trading on April 28.
Sayona told shareholders that the injection of capital would advance the company’s bid for NAL, in partnership with lithium miner Piedmont, as well as to support the development of its flagship Authier lithium project, and its emerging Tansim lithium project.
“Quebec offers enormous competitive advantages as a lithium producer and due to its world-class infrastructure and labour, environmentally friendly hydropower and access to the fastest growing North American battery market,” said Sayona MD Brett Lynch.
“This funding will help ensure we can cement our lithium projects as key to the region’s clean energy future, with the potential for clean energy and green lithium hydroxide production directed at Ontario’s automakers and North Carolina battery markets.”
Sayona has submitted a bid for NAL, which halted spodumene production at its mine in February last year. NAL in 2018 produced 114 000 t of spodumene against a nameplate capacity of 180 000 t. The operation also has the potential to produce battery-grade lithium carbonate with the necessary investment.
Sayona 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.