- Sayona Mining (SYA) raised $50 million through a capital raise to help it buy North American Lithium and to advance its Abitibi lithium hub
- Piedmont Lithium (PLL) subscribed for $8 million under the oversubscribed placement, which netted a total of $45 million
- A share purchase plan (SPP) should raise an extra $5 million, with SYA shares offered at 7.5 cents under both offers, representing a 4.7 per cent discount
- The company says the acquisition will help advance its Québec growth strategy and help it supply the US’s growing demand for electric vehicles
- SYA shares are down 9.28 per cent at 8.8 cents each at 11:07 am AEST
Sayona Mining (SYA) has raised $50 million to help it purchase North American Lithium and to advance its Abitibi lithium hub in Québec.
The mining stock first flagged the capital raise last week, when it placed its shares in a trading halt ahead of a fundraising announcement.
SYA has since come out of the halt and announced it raised $45 million via a placement and plans to raise $5 million via a share purchase plan (SPP).
It said the share placement closed oversubscribed, with fellow ASX-lister Piedmont Lithium (PLL) subscribing for $8 million worth of shares.
SYA will now issue a total of 600 million shares, each priced at 7.5 cents, which represents a discount of 4.7 per cent to the company’s last closing price.
The shares will be issued via two tranches, with shareholders required to sign off on the second tranche.
For the SPP, SYA will open the offer to shareholders later this month on July 21, with the offer due to close by August 18.
Sayona said all the funds raised would go towards the acquisitions and the company’s wider Québec growth strategy.
Managing Director Brett Lynch said ultimately the company wanted to supply the US’s growing demand for electric vehicles (EV).
“This new funding will allow us to finalise our acquisition of North American Lithium, a key part of our Québec growth strategy, supporting the development of a world‐scale Abitibi lithium hub that is purpose‐ built to supply the North American EV revolution,” Mr Lynch said.
“We are delighted by the support for the placement from major and new institutional investors in Canada, the US, Asia and Australia, as we build our institutional shareholder base.”
Following today’s announcement, Sayona Mining shares were trading down 9.28 per cent at 8.8 cents each at 11:07 am AEST.