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- Sayona Mining (SYA) is conducting a fully underwritten renounceable rights entitlement issue to raise up to $20.4 million
- Under the one-for-six rights issue, shares will be offered to eligible company shareholders at 3.2 cents each
- The entitlement issue will close on April 20, with new shares expected to start trading on April 28
- Capital raise proceeds will support the company’s growth plans in Canada, such as advancing its bid for North American Lithium
- Sayona Mining is down 2.56 per cent and trading at 3.8 cents per share
Sayona Mining (SYA) is conducting a fully underwritten renounceable rights entitlement issue to raise up to $20.4 million.
The one-for-six rights issue is being underwritten and led by Canaccord Genuity, which is also acting as broker to the offer. Under the entitlement issue, shares will be offered to eligible company shareholders at 3.2 cents each.
Sayona Mining’s major shareholder, ASX-lister Piedmont Lithium (PLL), will be exercising its full entitlement under the offer.
Proceeds from Sayona Mining’s capital raise will primarily support the company’s plans for growth in Quebec, Canada. In particular, the capital injection will help Sayona to advance its bid for North American Lithium.
Some funds will also go towards supporting the development of the company’s emerging Tansim Lithium Project and its flagship Authier Lithium Project in Canada.
Sayona Mining’s Managing Director, Brett Lynch, commented that the funds will provide a major boost to the company as it works to become a world-scale producer in the near term.
“This funding will help ensure we can cement our lithium project as key to the region’s clean energy future, with the potential for clean and green lithium hydroxide production direct to Ontario automakers and North Carolina battery makers,” he said.
“I would like to thank our investors and partners, notably Piedmont Lithium, for their tremendous support at this transformative stage in Sayona’s evolution,” he added.
The company’s entitlement issue is likely to close on April 20, 2021, with new shares expected to start trading on April 28.
Sayona Mining is down 2.56 per cent, trading at 3.8 cents per share at 11:00 am AEDT.
