Share Purchase Plan
Registered holders (Shareholder) of fully paid ordinary shares as at 5.00pm (EST) on Wednesday 12 April 2017 (Record Date) with a registered address in Australia or New Zealand (Eligible Shareholder) will be eligible to participate in the Plan.
The issue price will be determined at the issue date of New Shares under the Plan based on a 20% discount to the volume weighted average price of Company shares traded on the ASX during the five trading days immediately prior to the Issue Date of the New Shares on which sales in Company Shares were recorded, rounded up to the nearest 0.1 cent (Issue Price).
Sayona Mining is pleased to confirm that Patersons Securities Limited (Patersons) has agreed to underwrite the Plan to the amount of $1,500,000, subject to standard terms and conditions. Patersons has also agreed to act as the lead manager to the Plan.
Funds raised under the Plan will be used to accelerate the development of the Authier project in Canada; to fund exploration activity on the Company's Australian lithium projects and working capital.
The proposed use of the funds raised under the SPP is as follows:
- to accelerate the development of the the Company's Authier lithium project in Canada;
- to fund exploration activity on the Company's Australian lithium projects;
- to provide general working capital; and
- for corporate costs and the costs of the issue.
Authier Work programs will be focused on enhancing the value of the project, including:
- Resource upgrade following the completion of the Phase 2 drilling program;
- Geotechnical and hydrogeological programs to improve the pit wall slopes and reduce the life-of-mine waste movement;
- Further metallurgical testing to optimise recoveries and concentrate grades;
- Updating the February 2017 Pre-Feasibility Study and Ore Reserve;
- Studying the potential for producing value-added lithium carbonate and/or hydroxide; and
- Continuation of the environmental and mining lease work programs.
In addition, the Company is progressing its Mallina project in the world-class Pilgangoora lithium district in Western Australia, where mapping and sampling programs have outlined a number of prospective lithium targets.
Further details of the Company's current activities are set out in the announcements made to ASX and are available from ASX, or our website at http://www.sayonamining.com.au
Details of how to participate in the Plan are set out in the terms and conditions of the Share Purchase Plan, enclosed with this letter (see the link below).
An Eligible Shareholder that does not wish to participate in the Plan is not required to do anything and may disregard this letter and the other Offer Documents. In this event, the number of Shares held by that Eligible Shareholder will not change but the percentage of their shareholding in the Company will be diluted.
The important dates in relation to this Offer are summarised below:
-------------------------------------------------------------------- Event Date Record Date 5pm (EST) 12 April 2017 Announcement of Share Purchase Plan 13 April 2017 Despatch of Plan Offer Document 21 April 2017 Opening Date 21 April 2017 Closing Date 10 May 2017 Issue Date of new Shares and Dispatch of Holding Statements 15 May 2017 New Shares commence trading on ASX 16 May 2017 --------------------------------------------------------------------Subject to the Listing Rules, the dates in the table above are indicative only and subject to change. The Company reserves the right to vary these dates, including whether to close the Plan Offer early or accept late Applications, either generally or in particular cases, without notifying any recipient of the Offer Documents or any Applicants. Eligible Shareholders who wish to submit an Application are encouraged to do so as soon as practicable after the Plan Offer opens.
To view the terms and conditions of the Share Purchase Plan, please visit:
About Sayona Mining Ltd
Sayona Mining Limited (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, development project, construction forecast to commence in early 2019 and first concentrate production in early 2020. Please visit us as at www.sayonamining.com.au
Sayona Mining Ltd