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- Sayona Mining (SYA) has launched a rights issue to raise up to $4.3 million
- The offer is priced at 0.8 cents per share and involves a 1 free attaching option for every 2 new shares
- Sayona will use the funds to support its growth strategy as an emerging lithium producer in Quebec
- In support of this, directors and management will subscribe for $420,000
- Managing Director Brett Lynch and Quebec CEO Guy Laliberté will also subscribe for an additional $400,000
- Company shares are down 20 per cent and trading for 0.8 cents each
Sayona Mining (SYA) has launched a renounceable rights issue to raise up to $4.3 million which will fund its growth in Quebec, Canada.
The offer is priced at 0.8 cents per share which is a 34 per cent discount to the 30-day volume weighted average price (VWAP), and a 48 per cent discount to the 90 day VWAP.
Eligible shareholders will also receive a one-for-two free attaching listed option that is exercisable at 2 cents per share.
The rights issue will close on April 3 2020, with the new shares expected to commence trading on April 14.
In support of Sayona’s growth strategy to become a world-scale lithium producer, directors and management have agreed to subscribe for $420,000 of their entitlement under offer.
Company Managing Director, Brett Lynch and Quebec CEO, Guy Laliberté, have also committed to subscribe for an extra $400,000 from any shortfall.
“I would like to thank Directors and management for their investment, which represents a vote of confidence in our future,” Managing Director Brett Lynch said.
“The opportunity in front of us is compelling and these funds will put us in an excellent position to deliver on our strategy for the benefit of all stakeholders,” he added.
The issue is partially underwritten to $1.5 million by Mahe Capital, a leading investment advisory firm.
“Sayona’s plans in Québec are rapidly picking up speed as we advance our bid for NAL while also progressing approvals for our flagship Authier Lithium Project,” Brett stated.
Sayona first announced its plans to bid for the North American Lithium operation in Quebec back in September 2019. The company intends to restart mining and milling of the lithium mine.
Company shares are down 20 per cent and trading for 0.8 cents each at 1:11 pm AEDT.
