Lithium miner Sayona Mining Limited (ASX: SYA) has attracted support from a new US investor, amid an upturn in the lithium sector and increasing momentum concerning the company’s bid for the North American Lithium mine in Québec, Canada.
Under an agreement with New York‐based investment firm Obsidian Global GP, LLC, Sayona has secured a facility of up to $2.75 million, with an initial tranche of $1m of convertible notes.
Sayona’s Managing Director, Brett Lynch, said the funds will be used to support the company’s bid for the North American Lithium (NAL) mine, advancing its flagship Authier Lithium Project and other key projects, together with providing essential working capital.
Mr Lynch said the new investment follows an upturn in the lithium sector since the start of 2020 and as Sayona builds momentum in its bid for the NAL mine, which it aims to make the centrepiece of a lithium hub comprising a concentrator supplied by two or potentially three orebodies.
Sayona has also gained increased stakeholder support for its emerging Authier project, as evidenced by the signing of an agreement with First Nation Abitibiwinni.
We are delighted to welcome Obsidian Global as a new investor at this crucial stage in the company’s development,” Mr Lynch said.
“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.
“With upcoming potential re‐rating catalysts including our bid for NAL 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.”
Sayona has entered into the Convertible Securities Agreement, pursuant to which, subject to the satisfaction of certain conditions, Obsidian may subscribe for, and the company may elect to (at its sole discretion) issue, convertible notes to raise up to A$2.75 million in up to three tranches.
Each convertible note is priced at US$1.00, has a face value of US$1.10 and will not accrue any interest and has a 12 month maturity date