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Sayona Mining raising up to $4 million in rights offer to support lithium strategy

The renounceable entitlements offer follows a placement which raised $11 million.
Increasing amounts of cash in jars
A definitive feasibility study for the Authier project is due for completion this year

Sayona Mining Ltd (ASX:SYA) intends to raise almost $4 million in an entitlement issue to eligible shareholders to advance its lithium development strategy in Canada.

The pro rata renounceable entitlement issue follows a share placement at 5.1 cents per share which has been supported by domestic and institutional funds to raise $11 million.

READ: Sayona Mining’s pilot plant operations gather pace for lithium project in Canada

Patersons Securities Limited is lead manager to the rights offer which is not underwritten.

It is made on the basis of one new share for every 22 shares at a price of 5.1 cents per share with one free attaching new option to be issued for every two new shares issued.

The $15 million in total funds raised will be used to fund the further assessment of the company’s flagship Authier Lithium Project in Quebec.

Focus on Authier DFS

Sayona’s primary focus is centred on completing a definitive feasibility study (DFS) this year.

Funds will also be directed to exploration of the Tansim and Mallina lithium projects and for working capital.

The timeline lists Thursday, May 24, 2018, as the expected closing date and May 31 as the expected issue date.

READ: Sayona Mining secures $11 million in placement for lithium development

In relation to the placement, Sayona’s CEO Corey Nolan said: “Funds will be applied to finalising pre-construction activities, assessing the value-adding downstream potential and realising value from the extensive portfolio of lithium properties.”

Lithium resource increase

Sayona increased the Authier lithium JORC-compliant resource by 12% to 209,476 tonnes of contained lithium oxide compared to the November 2017 estimate of 186,939 tonnes.

Authier’s resource now totals 20.46 million tonnes at 1.02% lithium oxide and 86% of this is in the measured and indicated categories.

After the DFS is completed Sayona plans to compile a new JORC-compliant ore reserve estimate.

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Sayona Mining Ltd Timeline

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