The renounceable rights issue closed last Thursday and Sayona is now able to issue up to 54.47 million shares as part of the shortfall.
The company has up until 24 August 2018 to place these shares at 5.1 cents each.
Last week, Sayona also completed the operation of its pilot plant program in Canada in preparation for completion of a definitive feasibility study (DFS).
Feed samples for the pilot plant were taken from the company’s flagship 100% owned Authier Lithium Project in Quebec, Canada.
The objectives of the piloting program were to produce a 6% lithium oxide concentrate at recoveries of greater than 80% using feed samples that represented potential future mining material.
Work continues towards DFS completion
The optimised pilot flow sheet was able to achieve a concentrate grading 6.0% lithium oxide at a 79% recovery.
The pilot program has confirmed the final process flow sheet and operating parameters for the DFS which is expected to be completed late in the June quarter.
Further testing will continue over the next six months targeting further optimisation and improvements to the flow sheet and operating parameters.