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 – valued at $44.5 million based on its 20-day volume weighed average price. That represents around 2% of the lithium explorer's 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.
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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 explorer's recently announced acquisition.
That's right, the newly issued parcel of shares was part of its purchase of 1,824 exploration claims over a major part of Canada's Frotêt‐Evans 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 Troilus' stock. That will leave it with a 9.26% hold in its Canadian peer.
The newly purchased claims haven't been extensively explored for lithium and are located nearby Sayona's 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.
