Mining News
Sayona Mining raises A$200M to speed Québec lithium production
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(Kitco News) - North American lithium producer Sayona Mining (ASX: SYA) (OTCQB: SYAXF) announced today it has secured A$200 million in additional funding to speed development of its Québec lithium resources.
In a press release, the company said that it has launched a fully underwritten A$200 million two tranche placement at A$0.18 per share to professional and sophisticated investors.
Sayona added that the placement funding will expedite the development of the company's emerging northern Québec lithium hub, centered on its Moblan lithium project, where a 60,000m drilling campaign is currently underway.
"A resource upgrade is anticipated following completion of the drilling, with feasibility studies continuing on a new mining operation located near established infrastructure and with potential for downstream processing," the company said.
Importantly, Sayona noted that its flagship NAL operation is continuing its production ramp‐up, with the new funding to support expedited mine development studies, assessment of downstream options including lithium carbonate production, and associated infrastructure planning.
Additional spending is also anticipated on project infrastructure, with NAL forming the centre of Sayona's Abitibi lithium hub.
Moreover, additional funding will be allocated towards drilling and assessment of the company's lithium and gold exploration portfolio in Western Australia's highly prospective Pilbara region, including maiden drilling at the Mt Dove gold project, the closest Sayona lease to the Hemi discovery, and at the Tabba Tabba lithium project.
Sayona said the remaining funds will be used for working capital purposes, including corporate development and transaction costs.
Managing Director Brett Lynch commented, "This funding will bolster Sayona's balance sheet strength and accelerate the development of already North America's leading hard rock lithium resource base, currently its only significant source of spodumene (lithium) production.
"The focus of the investment will be on fast‐tracking feasibility work to commence spodumene (lithium) production at our Moblan lithium project in 2027, also targeting the establishment of integrated downstream production facilities in Québec."
Sayona Mining is a North American lithium producer with projects in Québec, Canada and Western Australia. In Québec, 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. Sayona also holds a 60% stake in the Moblan lithium project in northern Québec. In Western Australia, the company holds a large tenement portfolio in the Pilbara region prospective for gold and lithium.
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