Sayona Mining (ASX: SYA) gains 4% on AU$55m capital raise plan

March 07, 2023 07:07 PM AEDT | By Versha Jain

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Sayona Mining (ASX: SYA) gains 4% on AU$55m capital raise plan — Image source: © Gavinp101 | Megapixl.com

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Highlights:

Sayona Mining Limited (ASX:SYA), on Tuesday, 07 March 2023, announced to raise C$50 million and entered into a subscription agreement with PearTree Securities.

The company will raise funds by issuing shares at AU$0.315 per share.

The funds will be used for further exploration, resource drilling, restarting operations at North American Lithium (NAL) and other projects.

Sayona Mining Limited (ASX:SYA), on Tuesday, 07 March 2023, declared its plan to raise C$50 million (AU$54,954,640 before costs) from flow-through-shares (FTS) by issuing 174,459,177 shares at C$0.2866 (AU$0.315) per share.

Mineral exploration companies are finding ways to expand and enhance their resources and expedite the processes to make the most from lithium, a critical mineral for batteries.

In one such effort, the emerging lithium explorer and producer Sayona has entered into a subscription agreement with PearTree Securities, a Canadian flow‐through share (FTS) dealer for share issuance under the Canadian Tax Law’s FTS provision.

Notably, the share issuance price of AU$0.315 is a 34% premium over the company’s last closing price.

In the process, Jett Capital Advisors LLC is acting as the adviser to Sayona.

The company then witnessed its shares rise by around 4%. SYA stock ended the day at AU$0.245 following this announcement, with a 4.255% gain.

This AU$2.04 billion company, by market cap as of 07 March 2023, seeks funding to enhance its exploration efforts, restarting its North American Lithium (NAL) operation and northern lithium hub and other projects in Québec.

The company intends to use the funds to meet Canadian exploration expenses (CEE), including expedited drilling activities at priority targets, prospecting, stripping and channel sampling and CEE staffing expenses. In short, this funding is expected to support the company to fast pace its progress in expanding its lithium resource base.

After the trading halt requested by the company on 03 March preceding today’s announcement, the stock grabbed attention on Tuesday. Eventually, its volume soared to 90,531,249 by the end of the day, surpassing its 90-day average of 43,194,220.

The stock was one of the top gainers in the S&P/ASX 200 Index on 07 March. In this year (2023) so far, SYA stock has advanced around 29%.

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