Sayona Mining Ltd.: Capital Raise to Advance Authier Lithium Project Development

Brisbane - Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) ("Sayona" or "Company") is pleased to announce that it has received firm commitments from international and domestic institutional, and sophisticated investors for an A$11 million Placement, and intends to undertake a pro rata renounceable Rights Issue to raise a further A$4 million. The terms of the Placement and Rights Issue are outlined below.

KEY HIGHLIGHTS

- Oversubscribed Placement Issue to raise A$11,118,000

- Significant support received from international and domestic institutions in the capital raising

- The company will undertake a rights issue to raise up to A$4,000,000 to enable all shareholders to participate in the capital raising

- The majority of the new funding will be applied to advancing the Authier lithium project towards development

The proceeds from the capital raising and the Company's existing cash will be applied as follows:

- Advancing the Authier lithium project towards production, including:

o Finalisation of the Definitive Feasibility Study, engineering and design;

o Completion of the permitting activities including public consultation;

o Purchasing of certain long-lead capital items;

o Commencement of a downstream processing feasibility study;

- Exploration activities at the Tansim and Mallina lithium properties;

- General working capital, administration expenses and costs of the capital raising.

Corey Nolan, Chief Executive Officer, commented "The Company is very pleased to have attracted domestic and institutional funding support to continue advancing Authier towards production. The funds will be applied to finalising the pre-construction activities, assessing the value-adding downstream potential and realising value from its extensive portfolio of lithium properties."

PLACEMENT

The Placement will raise A$11,118,000 through the issue of 218,000,000 Placement Shares at an issue price of 5.1 cents (A$0.051) per Placement Share, with one (1) free attaching Placement Option exercisable at 7.8 cents (A$0.078) on or before 30 April 2020 for every two (2) Placement Shares subscribed.

The Placement will settle on Monday 23 April 2018, with the Placement Shares to be issued by 26 April 2018.

The issue price represents a 15% discount to the 15 day volume weighted average share price traded on the ASX prior to the Company entering into a trading halt on 16 April 2018.

Jett Capital Advisors, LLC and Patersons Securities Limited acted as Joint Lead Managers to the Placement.

PRO RATA RENOUNCEABLE RIGHTS ISSUE

Following completion of the Placement, the Company will undertake a pro rata renounceable rights issue to eligible participants to raise up to $3,924,790 (before the costs of the offer), comprising an offer on the basis of one (1) Rights Share for every twenty-two (22) existing Shares held at an issue price of 5.1 cents ($0.051) per Rights Share, together with one (1) free attaching Rights Option exercisable at 7.8 cents ($0.078) on or before 30 April 2020 for every two (2) Rights Shares subscribed.

The Rights Issue is to be underwritten by Patersons Securities Limited, who are also acting as the Lead Manager to the Rights Issue.

Placement Capacity

The Company will issue 218,000,000 Placement Shares and 109,000,000 Placement Options under the Placement for a total of 327,000,000 Placement Securities. 212,267,328 Placement Securities are to be issued pursuant to the Company's 15% placement capacity under ASX Listing Rule 7.1 and 114,732,672 are to be issued pursuant to Sayona's additional 10% placement capacity under ASX Listing Rule 7.1A.

The Company provides the following information under ASX Listing Rules 3.10.5A and 7.1A.4(b) in respect of the Placement Securities issued under ASX Listing Rule 7.1A.

(a) Sayona issued 114,732,672 Securities under ASX Listing Rule 7.1A which resulted in the following dilution to existing shareholders: (see link below)

(b) The 114,732,672 Placement Securities that were issued under Sayona's 10% capacity under LR7.1A, are being offered in addition to the rights issue (details below) to ensure that existing shareholders have the ability to participate in the capital raising.

(c) Sayona confirms that there was no underwriter in respect to the Placement.

(d) The Placement is being conducted as part of the overall capital raising (which includes the Rights Issue). The fees and costs in connection with the capital raising will be disclosed in a Prospectus to be released in accordance with the indicative timetable.

Indicative Timetable

The current proposed timetable for the Rights Issue is set out below. The dates are indicative only and Sayona reserves the right to vary the dates (subject to the Corporations Act and the ASX Listing Rules).

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Event                                                    2018 
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Trading halt 
Receive firm commitment for the Placement and 
subunderwriting commitments for the Rights Issue  16-17 April 
Offer announced                                      18 April 
Settlement of Placement                              23 April 
Prospectus lodged with ASIC and ASX                     1 May 
Trading of rights commences                             3 May 
Record date                                             4 May 
Despatch of Prospectus                                  9 May 
Trading of rights closes                               16 May 
Closing date for Rights Issue                          23 May 
Rights Issue shortfall notified                        25 May 
Rights Issue shortfall settled                         29 May  
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To view the release, please visit:
http://abnnewswire.net/lnk/DD74C1DA

About Sayona Mining Ltd:

Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) is an Australian-based, 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. Sayona’s primary objective is developing the Authier lithium project in Quebec, Canada. Authier is an advanced, near term development project, construction forecast to commence in the second half of 2018 and first production in late 2019. Please visit us as at www.sayonamining.com.au

Source: [wp=2686]Sayona Mining Ltd.[/wp



Contact:

Paul Crawford Company Secretary
Phone: +61-7-3369-7058
Email: info@sayonamining.com.au
www.sayonamining.com.au