Sayona Mining Ltd: A$50M Raise Fund NAL Acquisition Advance Abitibi Lithium Hub

Brisbane, Australia - Emerging lithium producer Sayona Mining Ltd. (ASX:SYA) (FRA:DML) (OTCMKTS:DMNXF) has won significant investor support for its Quebec expansion strategy, amid unparalleled demand growth for battery metals from the accelerating electric vehicle industry in North America.

Funding the Company's acquisition of North American Lithium and boosting its emerging Abitibi lithium hub, the Company has undertaken a Placement to raise A$45 million through the issue of 600,000,000 new fully paid ordinary shares at an offer price of A$0.075 per New Share.

The Placement was significantly oversubscribed, with Sayona receiving strong support from institutional investors in North America, Europe and Asia together with Australia. Pricing was at a 4.7% discount to the 15-day VWAP of A$0.079. Sayona's major shareholder and strategic partner, Piedmont Lithium Inc. (NASDAQ:PLL) (ASX:PLL) has also subscribed for A$8 million in the Placement.

Ensuring all shareholders receive the same opportunity to participate in the Company's growth, Sayona also intends to undertake a capped SPP to raise up to A$5 million at the same offer price as the Placement.

Details concerning the SPP will be provided in a Plan Booklet to be dispatched to shareholders on 21 July 2021. Refer to the below timetable for relevant dates concerning the SPP.

Sayona's Managing Director, Brett Lynch commented: "We are delighted by the support for the Placement from major and new institutional investors in Canada, the United States, Asia and Australia, as we build our institutional shareholder base.

"The capital raising has been structured to ensure retail shareholders have the same opportunity to participate and we look forward to undertaking the SPP on the same terms as the Placement.

"This new funding will allow us to finalise our acquisition of North American Lithium, a key part of our Quebec growth strategy, supporting the development of a world-scale Abitibi lithium hub that is purposebuilt to supply the North American EV revolution."

Canaccord Genuity (Australia) Limited acted as Lead Manager and Sole Bookrunner to the Placement.

Desjardins Capital Markets acted as a finder in connection with certain purchasers under the Placement.

Jett Capital Advisors acted as North American adviser regarding the Placement.

Capital Raising summary

Sayona has received firm commitments to raise A$45.0 million by issuing 600,000,000 new fully paid ordinary shares in the Company ("New Shares") via a two-tranche Placement:

- Tranche 1 has raised A$31.8 million via the issue of 423,631,221 New Shares pursuant to the Company's existing ASX Listing Rule 7.1 capacity available for issue; and

- Tranche 2 has raised A$13.2 million via the issue of 176,368,779 New Shares and is subject to shareholder approval to be sought at a forthcoming General Meeting.

Major shareholder, Piedmont Lithium Inc., has committed to subscribe to A$8 million in the Placement which will settle in Tranche 2.

The Issue Price of A$0.075 per New Share represents a 19.1% discount to the five-day volume weighted average price ("VWAP") of shares traded on the ASX of A$0.093 per share and a 4.7% discount to the 15-day VWAP of shares traded on the ASX of A$0.079 per share.

Share Purchase Plan

Sayona will offer existing shareholders on the share register as at 9 July 2021 with registered addresses in Australia and New Zealand ("Eligible Shareholders") the opportunity to apply for a maximum of A$30,000 worth of New Shares in the Company. The New Shares issued under the SPP will be offered at the same Issue Price as the Placement and will rank equally with existing new fully paid ordinary shares on issue.

The SPP will be capped at A$5 million. Sayona reserves its right to scale back applications (in whole or in part) in its absolute discretion and to close the offer early. Details concerning the SPP will be provided in a Plan Booklet to be dispatched to shareholders on or about 21 July 2021.

To view the SPP Timetable, please visit:
https://abnnewswire.net/lnk/N8J9J801

About Sayona Mining Ltd:

Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) is an Australian, ASX-listed (SYA) company focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors. The Company has lithium projects in Quebec, Canada and in Western Australia.

Please visit us as at www.sayonamining.com.au

Source:
Sayona Mining Ltd.

Contact:

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