Sayona raises C$50 million to advance lithium projects in Quebec
(Kitco News) - Lithium developer Sayona Mining (ASX: SYA) (OTCQB: SYAXF) announced today it has entered into a subscription agreement with PearTree Securities for the issuance of 174,459,177 shares at a price of A$0.315 per share for aggregate gross proceeds of A$54.9 million using the FTS provisions under Canadian tax law.
According to a company press release, FTS to be placed at A$0.315 per share, representing a 34% premium to Sayona's last closing price and a 41% premium to the 10 day VWAP.
Sayona said the funding will help advance exploration efforts while the company continues to progress the restart of its North American Lithium (NAL) operation, together with Sayona's other growth projects in Quebec, including its emerging northern lithium hub.
Sayona added that the company is well placed to progress its expanding lithium resource base, with this additional funding adding to its financial resources.
Managing Director Brett Lynch commented, "Sayona has made significant progress in developing the leading hard rock lithium resource base in North America, with the pending restart of production at NAL set to mark our progression from explorer to producer.
"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 minimizing dilution for the benefit of our shareholders."
Sayona Mining is an emerging lithium producer with projects in Quebec, Canada and Western Australia. In Quebec, Sayona's assets comprise North American Lithium together with the Authier Lithium Project and its emerging Tansim Lithium Project, supported by a strategic partnership with American lithium developer Piedmont Lithium.
The company also holds a 60% stake in the Moblan Lithium Project in northern Quebec. In Western Australia, the company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.
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