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Highlights
- Sayona’s shares were trading at AU$0.187 each, down 14.77% on ASX at 2.17 PM AEST today.
- The fall in Sayona shares might be because of the materials sector, which was 0.80% down.
Shares of Sayona Mining Limited (ASX:SYA) plunged on Wednesday (1 June 2022) and were trading at AU$0.187 each, down 14.77% on ASX at 2.17 PM AEST. The ASX 200 Index was 0.089% or 6.40 points up at 7,217.60 at 2.25 PM AEST.
Sayona did not provide investors with any price-sensitive information today and it seems that the fall in shares may be because of the materials sector, which was 0.80% down at 2.21 PM AEST today. The ASX 200 Materials Index was 0.85% down at 17,774.60 at 2.26 PM AEST today. The other reason for the price dip could be the stock rally which ended on Friday (27 May 2022), as the investors might have made profit booking on their portfolios.
On Friday (27 May 2022), Sayona had announced that it has received commitments to raise AU$190 million in funding to restart spodumene concentrate production at its North American Lithium (NAL) facility in Québec.
The lithium miner also shared that it has appointed a new chief financial officer (CFO) along with several other appointments. This is a part of a restructured corporate structure that reflects the company's growth strategy.
Also Read: Sayona Mining (ASX:SYA) shares gain on funding commitments
Source: © Max5128 | Megapixl.com
How does Sayona plan to use the funds?
Sayona has issued over one billion shares, each worth AU$0.18. The new shares are scheduled to settle on Wednesday, 1 June 2022, and to be issued and traded on the ASX on Thursday, 2 June 2022.
The offering proceeds will be used to restart NAL, which is on track to produce its first spodumene concentrate in the first quarter of 2023.
A recent pre-feasibility study, which will serve as the foundation for the definitive feasibility study (DFS), demonstrated NAL's technical and financial viability. The DFS, which is expected to be released in the second half of the year, will examine a larger integrated NAL and Authier resource base as well as operation economics.
Update on Quebec project
North American Lithium, the Authier Lithium Project, and the Tansim Lithium Project are among Sayona's Quebec holdings. All projects are supported by a strategic collaboration with American lithium producer Piedmont Lithium Inc (ASX:PLL). Furthermore, Sayona owns a 60% stake in the Moblan Lithium Project in northern Quebec.
Source: © Barbulat | Megapixl.com
Road ahead for Sayona
Sayona is stepping up the lithium value chain and it has shared its plan for the next five years in its ASX release on 27 May 2022.
In 2022, Sayona aims to complete its NA restart plan and Abitibi Hub. It also plans to expand Moblan and explore WA gold/lithium this year.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 27 May 2022
From 2023 to 2024, the company eyes to develop Abitibi downstream refinery plans.
Also Read: PLS, MIN, AKE: 3 ASX lithium shares to watch out for in June 2022
