Emerging lithium producer Sayona Mining Ltd has received significant financial support for its growth strategy, with the company undertaking a successful single-tranche placement to global institutional, professional, and sophisticated investors of AUS$190 million.
Proceeds from the placement will be primarily used to fund the restart of spodumene concentrate production at Sayona’s North American Lithium (NAL) operation in Québec, Canada (Sayona 75%; Piedmont Lithium 25%). The planned restart at NAL remains on schedule for first spodumene concentrate production in 1Q23, with critical long-lead items secured and senior staff recruited. NAL concentrator commissioning is projected for late 3Q22/early 4Q22.
The recent pre-feasibility study (PFS) for NAL demonstrated the operation’s technical and financial viability and will form the basis of a definitive feasibility study (DFS) expected in the second half of 2022. The DFS will assess the economics of a larger integrated NAL and Authier resource base and operation.
The placement has provided Sayona with considerable balance sheet strength as the company rapidly develops its leading lithium resource base in North America, amid escalating demand from the electric vehicle and clean energy revolution. Sayona is also assessing the viability of a lithium hydroxide or carbonate plant at NAL, allowing for increased value-add to the operation and supporting the Québec Government’s battery strategy.
In addition to the proposed NAL restart, the placement will also provide strategic funding for Sayona to expand and grow its highly strategic Northern Hub resource base. The Northern Hub’s prospectivity is highlighted by the recent drilling discovery at the company’s Moblan Lithium Project.
Proceeds from the placement will be applied to:
- NAL refurbishment and studies (AUS$100 million).
- Authier development (AUS$35 million).
- Moblan evaluation and Feasibility Study update (AUS$25 million).
- Exploration and project evaluation (AUS$15 million).
- Working capital and offer costs (AUS$15 million).
Sayona’s Managing Director, Brett Lynch commented:
“This placement is a major vote of confidence in our ability to transform NAL into a sustainable and profitable producer of key battery metals.
“I would like to thank all our investors, both existing and new, for backing Sayona as we advance towards becoming the first local producer of spodumene in North America and ultimately moving downstream to capture even greater value-add from our expanding lithium resource base.”
Read the article online at: https://www.globalminingreview.com/mining/30052022/sayona-mining-gains-significant-financial-support-for-nal-restart/