AUS
NZ
UK
CA
USA
IND
Highlights
- At 12.58 PM AEDT, Sayona’s shares were trading at AU$0.24, down 6.92%, on ASX today.
- At 12.59 PM AEDT, the ASX 200 Materials index was 1.62% down at 17,253.40 points.
Shares of Sayona Mining Ltd (ASX:SYA) are trading under red territory today (15 November). At 12.58 PM AEDT, the lithium company's shares were spotted trading at AU$0.24, down 6.92%, on ASX today.
The decline in share price might be because of the weakness in the overall materials sector. At 12.59 PM AEDT, the ASX 200 Materials index was 1.62% down at 17,253.40 points.
However, the company had made an announcement on ASX yesterday (14 November). Post that, Sayona's shares closed trading at AU$0.26 per share, up 6.12% on ASX on Monday (14 November).
What is the announcement?
Following a strategic acquisition and earn-in agreement between Sayona Mining subsidiary NAL and Jourdan Resources Inc (TSXV:JOR) over its adjacent Vallée Lithium Project, Sayona Mining announced through an ASX filing that it would target an expansion in the future mine production capacity of its North American Lithium (NAL) operation in Québec.
The Vallée project consists of 48 claims totalling approximately 1,997 acres, and it is located just 500 metres from the NAL mine tenure. NAL's 19 claims, in contrast, total 582 hectares (ha).
According to the terms of the agreement, NAL will buy 20 claims totalling 755.3 ha outright. Pegmatite prospects are found nearby and parallel to the NAL orebody's strike direction.
Image source: © 2022 Kalkine Media®
Data source- Company announcement dated 14 November 2022
More details
In the ASX filing, Sayoa further informed that the remaining 28 claims, totalling 1,241.57 ha, of the Vallée project, are likewise subject to NAL's ability to acquire up to a 51% interest. By investing CA$4 million within the first year to obtain a 25% stock stake and another CA$6 million within two years to earn another 25%, NAL can earn up to 50% equity.
If Sayona completes a feasibility study and secures funding for establishing a mine at Vallée, an additional 1% equity will be available.
Additionally, for about CA$1.5 million, Sayona's Québec subsidiary will purchase a 9.99% stake in Jourdan through a private placement and will be granted the authority to designate a director to the company's board.
