Sayona Mining Ltd: Placement to Fund NAL Restart and Development Initiatives

Brisbane, Australia - Emerging lithium producer Sayona Mining Ltd. (ASX:SYA) (FRA:DML) (OTCMKTS:SYAXF) has received significant financial support for its growth strategy, with the Company undertaking a successful single-tranche placement to global institutional, professional and sophisticated investors of A$190 million ("Placement").

Proceeds from the Placement will be primarily used to fund the restart of spodumene concentrate production at Sayona's North American Lithium ("NAL") operation in Quebec, Canada (Sayona 75%; Piedmont Lithium 25%). The planned restart at NAL remains on schedule for first spodumene concentrate production in Q1 2023, with critical long-lead items secured and senior staff recruited. NAL concentrator commissioning is projected for late Q3/early Q4 2022.

The recent Pre-Feasibility Study ("PFS") for NAL (refer ASX release 23 May 2022) demonstrated the operation's technical and financial viability and will form the basis of a Definitive Feasibility Study ("DFS") expected in the second half of 2022. The DFS will assess the economics of a larger integrated NAL and Authier resource base and operation.

The Placement has provided Sayona with considerable balance sheet strength as the Company rapidly develops its leading lithium resource base in North America, amid escalating demand from the electric vehicle and clean energy revolution. Sayona is also assessing the viability of a lithium hydroxide or carbonate plant at NAL, allowing for increased value-add to the operation and supporting the Quebec Government's battery strategy.

In addition to the proposed NAL restart, the Placement will also provide strategic funding for Sayona to expand and grow its highly strategic Northern Hub resource base. The Northern Hub's prospectivity is highlighted by the recent drilling discovery at the Company's Moblan Lithium Project (refer ASX release 26 April 2022).

Use of Proceeds

Proceeds from the Placement will be applied to:

- NAL refurbishment and studies (A$100m)
- Authier development (A$35m)
- Moblan evaluation and Feasibility Study update (A$25m)
- Exploration and project evaluation (A$15m)
- Working capital and offer costs (A$15m).

Sayona's Managing Director, Brett Lynch commented: "This Placement is a major vote of confidence in our ability to transform NAL into a sustainable and profitable producer of key battery metals.

"I would like to thank all our investors, both existing and new, for backing Sayona as we advance towards becoming the first local producer of spodumene in North America and ultimately moving downstream to capture even greater value-add from our expanding lithium resource base."

Placement Details

Sayona has received firm commitments to raise A$190 million (before costs) through the issue of 1,054,406,346 new fully paid ordinary shares ("New Shares") at an issue price of A$0.18 per New Share.

The issue price of the New Shares represents a 12.2% discount to the last closing price on 24 May 2022.

The New Shares issued through the Placement will be issued under the Company's placement capacity pursuant to ASX Listing Rule 7.1.

The New Shares are expected to settle on Wednesday 1 June 2022 and be issued and commence trading on the ASX on a normal basis on Thursday 2 June 2022. New Shares issued under the Placement will rank equally with existing shares on issue.

Canaccord Genuity (Australia) and Petra Capital acted as Joint Lead Managers and Bookrunners to the Placement. Desjardins Capital Markets and Jett Capital Advisors acted as Co-Managers to the Placement.

Further details of the equity raising are set out in the Company's investor presentation* in link below. The investor presentation contains important information, including key risks of investing in Sayona and foreign selling restrictions with respect to the Placement.

Not an offer in the United States

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws.

To view the Presentation, please visit:
https://www.abnnewswire.net/lnk/T17O678R

About Sayona Mining Ltd:

Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:SYAXF) 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