- Sayona Mining (SYA) expands its northern lithium hub following an agreement with TSX-listed Troilus Gold to acquire a “significant” exploration package in Québec, Canada
- Under the deal, Sayona’s Canadian subsidiary will snap up 1824 claims covering 985 square kilometres near the Moblan lithium project, in which Sayona holds a 60 per cent share
- According to Sayona, the new claims have never been “extensively” explored for lithium, and they offer the potential for eastward extensions to the Moblan mineralisation
- Sayona Managing Director Brett Lynch says the acquisition provides the potential for a major resource boost to the company’s emerging northern lithium hub
- Shares in Sayona are down 2.13 per cent and trading at 23 cents at 11:51 am AEDT
Sayona Mining (SYA) has expanded its northern lithium hub following an agreement with TSX-listed Troilus Gold to acquire a “significant” exploration package in Québec, Canada.
Under the deal, Sayona’s Canadian subsidiary will snap up 1824 claims covering 985 square kilometres near the Moblan lithium project, in which Sayona holds a 60 per cent share.
According to the company, the acquired claims have not been extensively explored for lithium, and they offer the potential for eastward extension to the Moblan mineralisation and regional targets in the emerging lithium district.
Sayona will pay Toilus C$40 million (A$44.5 million) in SYA shares and make a C$10 million investment in Troilus in exchange for the exploration package. This will give Sayona a 9.26 per cent equity stake in Troilus.
Further, Troilus will receive a two per cent net smelter return royalty on all mineral products from the acquired claims.
Sayona Managing Director Brett Lynch said the acquisition provided the potential for a major resource boost to the company’s emerging northern lithium hub.
“This is an investment in Sayona’s future production by acquiring nearly 1000 square kilometres of prospective lithium acreage — more than 200 times the size of our current Moblan project,” Mr Lynch said.
“Sayona is rapidly advancing the leading lithium resource base in North America, in preparation for our move downstream into lithium carbonate and hydroxide production.”
Sayona is planning a new winter drilling campaign, with results from the current campaign expected by year‐end.
Meanwhile, a pre‐feasibility study (PFS) concerning the development at Moblan is due for completion by May 2023 and will be followed by a definitive feasibility study, expected by the end of September 2023.
Shares in Sayona were down 2.13 per cent and trading at 23 cents at 11:51 am AEDT.