Australian lithium explorer Sayona Mining, known for its lithium projects in Quebec, Canada and Western Australia, has received firm commitments for an oversubscribed capital raising placement to push its Authier lithium project towards production, securing $11 million from institutional investors.
The $11 million was raised by issuing 218 million shares at a price of 5.1 cents per share, with one free 7.8-cent placement option for every two shares subscribed, exercisable on or before April 30, 2020. The share placement will be settle by April 23 with shares to be issued by April 26.
Funds will be used to finalise progress on the project’s definitive feasibility study, as well as completion of public consultation and starting work on its downstream processing feasibility study.
In addition to development at Authier, Sayona also intends to use the funds for further development of exploration activities at its recently acquired Tansim property (near Authier) and Mallina lithium property in the Pilbara, WA. It will also put some towards general working capital and administration costs.
Sayona purchased the Authier project in July 2016 for $4 million (Canadian) and it has become increasingly attractive since; it initially discovered JORC-compliant reserves of 10.2 million tonnes (Mt) at 1.02 per cent lithium, which was updated in mid-2017 following further drilling of 4,000 metres to 17.4Mt at 1.02 per cent lithium. Last week, this increased even further, and reserves now stand at 20.46Mt at 1.02 per cent lithium oxide (86 per cent of which is measured or indicated).
Corey Nolan, chief executive officer of Sayona, was naturally pleased with the response to the raising.
“The company is very pleased to have attracted domestic and institutional funding support to continue advancing Authier towards production,” he said.