Highlights

• Investors back Sayona’s growth strategy, with renounceable rights issue raising $2.57 million (before costs) in an extremely turbulent market
• Significant support from shareholders, directors and new institutional investors
• Funds to support Sayona’s expansion plans, including bid for North American Lithium (NAL) in Québec, Canada together with flagship Authier Lithium Project.

Emerging lithium miner Sayona Mining Limited (ASX:SYA; OTC:DMNXF) announced today a boost for its expansion strategy, with the renounceable rights issue raising $2.57 million (before costs) despite unprecedented market volatility.

The Board considers this to be an excellent outcome in the current environment, with the All Ordinaries index having fallen by 30% since the Company went into trading halt on 9 March 2020. It reflects the ongoing and strong support of the Company and its growth strategy by shareholders, directors and new investors.   

A total of 321,367,640 new fully paid ordinary shares and 160,683,820* options exercisable at AUD$0.02 and expiring on 28 April 2023 will be issued to investors who applied under the offer (refer ASX announcement 12 March 2020). The new options will be quoted and tradeable on the ASX. The new securities are expected to be issued on Wednesday, 29 April 2020, in accordance with the rights issue timetable.

Highlighting their alignment with all shareholders’ interests, Directors and management showed confidence in Sayona’s plans by subscribing under the entitlement offer. Significantly, Sayona’s Managing Director, Brett Lynch and Sayona Québec CEO, Guy Laliberté, also subscribed for an additional AUD$400,000 from the shortfall.

The final allocations are as follows:

	Funds raised	Shares	Options*
Entitlements taken up	$882,727	110,340,824	55,170,412
Additional shortfall applications	$1,688,214	211,026,816	105,513,408
Total Rights Issue	$2,570,941	321,367,640	160,683,820

*Notes: The total number of options to be issued is subject to rounding. A further 20,426,423 options will be issued to the lead manager and underwriter using the Company’s existing placement capacity under Listing Rule 7.1.

Thanking investors for their support, Sayona’s Mr Lynch said the successful raising was a vote of confidence in the Company’s strategy.

“Current financial conditions are extremely difficult due to the COVID‐19 pandemic, which has inflicted an enormous toll not only on human lives but also on the global economy and financial markets, including the lithium sector. Yet despite this extreme headwind, both new investors and existing shareholders have shown their backing for Sayona and for this we are extremely grateful,” he said.

“These funds will be crucial in ensuring we maintain the momentum in our company‐transforming acquisition of NAL, which could deliver a substantial increase in value for shareholders. We also are continuing to advance our Authier project, which is steadily progressing through the approval process, while our other exploration projects in Québec and Western Australia offer further potential to add value.

“I would like to thank my fellow directors and management for their support of the Company in the rights issue, together with Mahe Capital and all our shareholders, both new and existing. This is a crucial stage in Sayona’s development and we are determined to repay your confidence.”

Mahe Capital Pty Ltd advised on the Offer, acted as Lead Manager and partially underwrote the Offer to $1.5 million.

Sayona reserves the right to place the balance of the shortfall available under the Offer within the permitted time period described in the rights issue prospectus.

This announcement is authorised by Sayona’s Board of Directors.

For more information, please contact:

Brett Lynch, Managing Director Phone: +61 (7) 3369 7058
Email: info@sayonamining.com.au

For media queries, please contact:

Anthony Fensom, Republic PR
anthony@republicpr.com.au; +61 (0)407 112 623

About Sayona Mining

Sayona Mining Limited is an emerging lithium miner (ASX:SYA), with projects in Québec, Canada and Western Australia. In Québec, Sayona is progressing a bid for the North American Lithium mine with the backing of a world‐class support team, while advancing its flagship Authier Lithium Project and its emerging Viau‐Dallaire prospect (Tansim project).

In Western Australia, the Company has a joint venture with leading lithium producer Altura Mining concerning its exploration portfolio in the world‐class Pilgangoora lithium district.

For more information, please visit us at www.sayonamining.com.au