THE BOURSE WHISPERER: Sayona Mining (ASX: SYA) announced it has received support from a new U.S. investor as it continues in its bid to land the North American Lithium mine in Québec, Canada.
Sayona Mining has reached an agreement with Obsidian Global GP, LLC, a New York‐based investment firm, under which the company has secured a facility of up to $2.75 million, with an initial tranche of $1 million of convertible notes.
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, along with providing working capital.
The company said the new investment follows an upturn in the lithium sector since the start of 2020, adding that it 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.
“We are delighted to welcome Obsidian Global as a new investor at this crucial stage in the company’s development,” Sayona Mining managing director Brett Lynch said in the company’s announcement to the Australian Securities Exchange.
“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.”