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Sayona Mining Limited (ASX:SYA) Raising C$50m to Advance Quebec Lithium Projects
Emerging lithium producer Sayona Mining Limited (ASX:SYA) (FRA:DML) (OTCMKTS:SYAXF) has entered into a subscription agreement with PearTree Securities Inc for the issuance of 174,459,177 shares at a price of A$0.315 per share for aggregate gross proceeds of A$54.9 million using the FTS provisions under Canadian tax law (Placement). Use of the FTS provisions significantly minimises dilution of issued capital.

The funding will help advance exploration efforts while the Company continues to progress the restart of its North American Lithium (NAL) operation, together with Sayona's other growth projects in Quebec, including its emerging northern lithium hub.

Sayona is well placed to progress its expanding lithium resource base, with this additional funding adding to its financial resources.

Sayona's Managing Director, Brett Lynch commented: "Sayona has made significant progress in developing the leading hard rock lithium resource base in North America, with the pending restart of production at NAL set to mark our progression from explorer to producer.

"This funding will provide an added boost to our expansion plans, with the FTS provisions allowing us to raise capital at a premium to the current share price, thereby minimising dilution for the benefit of our shareholders."

Flow-Through Share Raise Details

The Company has entered into a subscription agreement with PearTree Securities Inc for approximately C$50,000,000 (A$54,954,640 before costs) through the issue of approximately 174,459,177 shares at an issue price of C$0.2866 (A$0.315).

The gross proceeds received by the company will be used to incur Canadian exploration expenses (CEE) that qualify as "flow-through critical mineral mining expenditures" as such term is defined in the Income Tax Act (Canada) by December 31, 2024. Funds raised will be applied to exploration and drilling at Sayona's Quebec assets including expedited follow-up drilling at priority targets, prospecting, gravity, stripping and channel sampling and CEE eligible staffing expenses.

The new shares will be issued under the Company's existing placement capacity under ASX Listing Rule 7.1.

Settlement of the Placement is expected to occur on Thursday, 9 March 2023 and the new shares will rank equally with the Company's existing shares on issue. A cleansing prospectus under section 713 of the Corporations Act 2001 (Cth) will be issued in connection with the transaction.

Jett Capital Advisors LLC acted as adviser to Sayona and the FTS Placement has been facilitated by Canadian flow-through share dealer, PearTree Securities Inc.

To view the Prospectus, please visit:

Brett Lynch
Managing Director
Phone: +61 (7) 3369 7058

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