Sayona Mining Ltd’s [ASX:SYA] investors have backed the decision to acquire a majority interest in the Moblan Lithium Project in Northern Quebec.
To fund the acquisition, Sayona successfully completed a $100 million placement by issuing 689,470,310 new fully paid ordinary shares at an offer price of 14.5 cents per share.
This reflects a discount of 17.1% to the last closing price.
SYA will seek to raise a further $25.5 million through 1 for 35 non-renounceable rights issues at the same offer price.
The market oscillated on how to interpret the news, with the SYA share price rising as much as 8% in early trade before retracing.
Sayona Mining Ltd’s [ASX:SYA] share price is currently trading at 16.5 cents per share, down 5.71%.
Over the last 12 months, Sayona Mining managed to gain 1,600%, reflecting the keen interest in ASX’s lithium sector.
SYA’s $100 million placement
Today, SYA announced it received firm commitments to raise $100 million by issuing 689,470,310 new fully paid ordinary shares via a placement.
This will be at an issue price of 14.5 cents per new share. The pricing was based on a 17.1% discount to the last traded share price of 17.5 cents per share.
On top of this, Sayona will also undertake a 1 for 35 non-renounceable rights issue to raise up to $25.5 million.
This will be at the same issue price as the placement offer.
The rights Issue is open to all eligible shareholders and all the new shares issued will rank equally with the existing shares on issue.
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What’s next for the SYA Share Price?
Sayona’s Managing Director Brett Lynch said today’s placement comes after continued positive developments in market conditions, especially given SYA’s proximity to the crucial US EV market:
‘Demand for lithium from North America continues to accelerate, as highlighted by Ford’s recent US$11.4 billion-dollar battery investment on top of its US$30 billion investment in EVs.
‘Ford’s demand alone has the potential to exceed projected supply from all current North American projects in production by 2030.
‘Sayona wants to be at forefront in supplying this demand and now has both the means and the partners to make this happen.’
Sayona says the Moblan Lithium Project is host to high-grade spodumene mineralisation, with a mineral resource foreign estimate of 12.03 million tonnes at 1.4% Li2O.
Previous exploration includes 132 diamond holes for around 15,560 metres, establishing a 1.5km strike.
SYA believes there is potential to expand the resource and is undertaking follow-up work of previous drilling.
SYA gained more than 1,500% over the last 12 months, but it’s not the only lithium stock riding momentum.
Our market experts at Money Morning have found three compelling lithium stocks on the ASX right now that could be set to rise.
We’ve profiled them in a free report, which you can download and read today.
You can read ‘Three Lithium ‘Bounce Back’ Stocks for 2021’ here.
It’s a good read for investors looking to piggyback on what could potentially be a strong run for lithium stocks in the coming years.
For Money Morning
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