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Highlights
- Materials was one of the top performing sectors on ASX today (26 July 2022) at 11.59 AM AEST.
- Sayona’s shares were spotted trading at AU$0.19 each, up 1.32% on ASX at 11.59 AM AEST,
- The company announced that Morella Corporation had received commitments for AU$7.5 million funding to support the lithium growth strategy.
Shares of Sayona Mining Limited (ASX:SYA) were spotted trading at AU$0.19 each, up 1.32% on ASX today which was in line with ASX 200 Materials Index, which was 1.48% up at 15,239.30 points on ASX at 11.58 AM AEST.
It seems that Sayona’s shares started trading in green after a new announcement shared by the company on ASX on Monday (26 July 2022).
In its announcement, Sayona said that Morella Corporation Limited (ASX:1MC) had received commitments for AU$7.5 million in funding to support the lithium growth strategy.
According to the announcement, 500 million new fully paid ordinary shares will be issued by Morella to new and existing institutional and sophisticated investors both in Australia as well as outside Australia at an issue price of AU$0.015 each.
An AU$3 million cornerstone investment in the Placement was made by Waratah Capital Advisors (Waratah) through its subsidiary, Waratah Electrification and Decarbonization Fund (Waratah E&D Fund).
The placement price of AU$0.015 per share was 11.8% less than Morella's shares' most recent ASX closing price on 20 July 2022.
Lithium Royalty Corp (LRC), a North American royalty corporation, and Waratah E&D Fund are both sponsored by and general partners of Waratah.
Canaccord Genuity (Australia) Limited and Jett Capital Advisors, serving as Joint Lead Managers, oversaw the placement process.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 25 July 2022
Royalty Agreement with Sayona
LRC, Morella, and Sayona Mining Limited have also agreed to binding terms for a royalty on lithium products produced from the Tabba Tabba lithium project, tenement E45/4703, and the Mt Edon lithium project, tenements E59/2092 and E59/2055. These terms are in addition to the equity investment.
A number of Western Australian tenements, including Mt Edon and Tabba Tabba, are covered by an Earn-in Agreement between Morella and Sayona. Sayona and LRC had already worked out a similar royalty agreement for the Mallina Lithium Project. As Morella nears the fulfilment of its earn-in milestones, a joint venture between Morella and Sayona (Morella 51%, Sayona 49%) will be created.
In order to develop the Western Australian assets and delineate a first JORC Resource, Sayona and Morella have consented to use the initial royalty funding.
Sayona took over ownership of the Mt. Edon project area in the middle of March 2016.
Image Source: © Gwhitton | Megapixl.com
About Morella
Morella is a resource development and exploration firm which is currently working on well-located projects in Tier 1 mining jurisdictions in Australia and the United States.
These projects include exploration, resource definition, and development activities. To meet the growing demand for battery minerals, which is essential for facilitating the world's transition to green energy, Morella will acquire and produce lithium raw resources.