- Sayona Mining has rocketed 26.7 per cent in the Aussie share market this morning after announcing a farm-out deal from its WA lithium tenements worth $1.5 million
- Over a three year period, industry cohort Altura Mining will earn 51 per cent in the project by spending the cash to fund drilling at the ‘Pilgangoora’ lithium district – nearby its own existing lithium mine
- The multiple tenements make up a total of 1806 square kilometres of exploring to be had
- Since its spike, this morning, shares in Sayona are trading for an even one cent apiece from yesterday’s close of 0.75 cents each
Lithium focused explorer Sayona Mining has rocketed an impressive 26.7 per cent in the ASX today after announcing a major farm-out deal in WA.
The company inked an earn-in agreement with Altura Mining, drafting a three-year plan for Altura to earn a majority interest in the ‘Pilgangoora’ lithium district.
To eat up 51 per cent in the world-class project, Altura will be spending $1.5 million in exploration across the project’s tenements.
Sayona Managing Director Brett Lynch spoke on the company’s faith in the partnership with Altura this morning.
“Altura has a highly experienced in‐house team that successfully led the financing, construction and commissioning of its spodumene mine at Pilgangoora,” he said.
“It is this expertise that will ensure we derive maximum value from our exploration assets in WA,”
The total lithium district represents 1806 square kilometres, located near Altura’s existing Pilgangoora Mine which kicked off commercial production this March.
“Our common directors and shared experiences have given us a mutual understanding that will allow the potential of Sayona’s Australian exploration tenements to be fully explored,” Altura Managing Director James Brown said.
“For Altura, having access to Sayona’s exploration portfolio provides an enormous upside in terms of our project pipeline and we are determined to advance exploration activity as quickly as possible for the benefit of all,”
If Altura wishes to pull out of the deal, the company must spend at least half a million on exploration and complete at least 35000 metres of drilling.
Sayona will retain a 49 per cent stake in the project.
“It is rare for such a close alignment of two companies, but this deal is truly one that benefits both, particularly given our priority on advancing our flagship Authier Lithium Project in Québec,” Sayona’s Brett Lynch added.
The Authier project is fully owned by Sayona, purchased for CA$4 million in 2016. The project is currently valued to hold 20.94 million tonnes in 0.55 per cent grade lithium.
“We can now ensure that our funds are maximised towards the highest likelihood of increased shareholder returns, with the added upside of any potential new discoveries in Australia,” he concluded.
Since its gain this morning, shares in Sayona have hit an even one cent apiece. Yesterday, shares in SYA closed at 0.75 cents each.
Today, the company’s market cap is valued at $12.05 million.