- Sayona Mining (SYA) is set to pocket almost $3 million from a new U.S. investor
- Obsidian Global will give Sayona the investment through convertible notes with an initial tranche of $1 million
- The new funds will be used to advance Sayona’s bid for the North Amerian Lithium Mine in Canada
- On top of this, other funds will also support other Sayona projects
- Sayona shares have seen a healthy bump on the market today, currently selling 6.67 per cent up for 1.6 cents each
Sayona Mining (SYA) is set to bag almost $3 million from Obsidian Global to advance its bid for the North American Lithium mine in Quebec, Canada.
The junior lithium explorer has locked in a $2.75 million facility from New York-based investment firm Obsidian Global.
The funds will be invested into Sayona through convertible notes with an initial tranche of $1 million. Each interest-free note has a face value of US$1.10 (A$1.6) and matures in 12 months. After the initial tranche, the remaining $1.75 million will be raised through two extra tranches subject to shareholder approval.
Sayona said the new funds will not only support the North American Lithium mine bid, which the company eyed out in September, but also advance the company’s Authier Lithium project and provide general working capital.
The company’s Managing Director, Brett Lynch, said Obsidian has come on board at a “crucial” stage in Sayona’s development.
“The upturn in Sayona’s market value and trading activity since the start of the new year reflects increased investor confidence, not only in our company but the lithium sector as a whole, and we are determined to build on this momentum in 2020,” Brett said.
“With upcoming potential re‐rating catalysts including our bid for North American Lithium as well as the advancement of Authier’s regulatory approval process and the development of the nearby Viau‐Dallaire prospect, there is enormous potential for increased market value, providing benefits for all stakeholders,” he said.
According to Sayona, this new investment follows an upturn in the lithium sector since the start of 2020.
With each note convertible at a fixed price of 1.5 cents, Sayona shares have seen a healthy bump on the market today. Just after midday AEDT, Sayona is selling shares 6.67 per cent up for 1.6 cents each. The company has a $33.11 million market cap.