Sayona Mining obtains major financial support for the restart of NAL
Emerging lithium producer Sayona Mining Ltd has received significant financial backing for its growth strategy, with the company successfully undertaking a single tranche placement to global institutional, professional and sophisticated investors of A$190 million.
The proceeds of the offering will be used primarily to fund the restart of spodumene concentrate production at Sayona’s North American Lithium (NAL) operation in Quebec, Canada (Sayona 75%; Piedmont Lithium 25%). The planned restart at NAL remains on schedule for first production of spodumene concentrate in 1Q23, with long-term critical elements secured and senior management recruited. Commissioning of the NAL concentrator is scheduled for the end of 3Q22/beginning of 4Q22.
The recent Pre-Feasibility Study (PFS) for NAL demonstrated the technical and financial viability of the operation 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 built-in NAL. and Authier’s resource base and operation.
The placement has provided Sayona with considerable balance sheet strength as the company rapidly expands its core lithium resource base in North America amid rising electric vehicle demand and the clean energy revolution. . Sayona is also evaluating the viability of a lithium hydroxide or carbonate plant at NAL, enabling increased value addition to operations and supporting the Quebec government’s battery strategy.
In addition to the proposed restart of NAL, the placement will also provide strategic financing for Sayona to expand and grow its highly strategic Northern Hub resource base. The prospectivity of the North Hub is highlighted by the recent drilling discovery at the Company’s Moblan Lithium Project.
The proceeds of the placement will be applied to:
- Renovation and studies of NAL (100 million Australian dollars).
- Development of Authier (35 million Australian dollars).
- Moblan assessment and feasibility study update (A$25 million).
- Exploration and project evaluation (15 million Australian dollars).
- Working capital and supply costs (A$15 million).
Sayona General Manager 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 of our investors, existing and new, for supporting Sayona as we move forward to become the leading local spodumene producer in North America and ultimately head downstream to extract even greater value added from our expanding lithium resource base. ”
Read the article online at: https://www.globalminingreview.com/finance-business/30052022/sayona-mining-gains-significant-financial-support-for-nal-restart/