ASX lithium fans might have noticed a new influx of Sayona Mining Ltd (ASX: SYA) shares hitting the market this morning.
The company issued a whopping 185 million new shares â valued at $44.5 million based on its 20-day volume weighed average price. That represents around 2% of the lithium explorerâs outstanding shares, as per ASX data.
So, what spurred the company to issue such a substantial parcel of stock? Keep reading to find out.
The Sayona share price is trading at 22 cents right now, 2.22% lower than its previous close. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.26% right now.
Sayona Mining just issued 185 million new shares
The Sayona share price is in the dumps on Friday. Its slump comes amid the latest on the mineral explorerâs recently announced acquisition.
Thatâs right, the newly issued parcel of shares was part of its purchase of 1,824 exploration claims over a major part of Canadaâs FrotêtâEvans Greenstone Belt.
The claims, covering a total of 985 square kilometres, were bought from Candian-listed Troilus Gold Corp. The ASX lithium favourite told the market of the acquisition yesterday.
In addition to the buy, Sayona will subscribe to around $5.3 million worth of Troilusâ stock. That will leave it with a 9.26% hold in its Canadian peer.
The newly purchased claims havenât been extensively explored for lithium and are located nearby Sayonaâs 60%-owned Moblan Lithium Project. They offer potential for extensions to the Moblan mineralisation as well as other regional targets.
That wasn’t the first word from the ASX company this week. It also revealed another acquisition and earn-in agreement and hosted its annual general meeting (AGM).
Sayona is joined in the red by many of its fellow ASX 200 lithium shares today. The Pilbara Minerals Ltd (ASX: PLS) share price is currently down 4.2%. Meanwhile that of Allkem Ltd (ASX: AKE) has slipped 2.4% and Core Lithium Ltd (ASX: CXO) stock is 2.3% lower.
The post Why were 185 million new Sayona Mining shares just issued? appeared first on The Motley Fool Australia.
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More reading
- ASX lithium shareholders rejoice! Expert tips lithium price to hit $100K
- Sayona Mining share price slumps despite âmajor acquisitionâ
- Can ASX lithium shares really keep dining out at these price levels?
- The future of ASX lithium shares: Are investors looking through rose-coloured glasses?
- Sayona Mining share price slides 7% despite acquisition news
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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