Why were 185 million new Sayona Mining shares just issued?

An influx of shares topped off a busy week for the ASX 200 lithium stock.

| More on:
Woman looking at her smartphone and analysing share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

Key points

  • Eagle-eyed market watchers might have noticed a large parcel of Sayona shares hitting the market this morning
  • They relate to an acquisition of Canadian exploration claims announced yesterday
  • The Sayona share price is down 2.2% right now, trading at 22 cents 

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.

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.

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.

More on Materials Shares

A group of people in suits and hard hats celebrate the rising share price with champagne.
Materials Shares

This ASX mining stock is jumping 11% on big news

This miner is having a good session on Thursday. Let's find out why.

Read more »

Lion leaping with mouth open, symbolising a rising Liontown share price.
Materials Shares

Why is the Liontown share price leaping 9% on Tuesday?

This ASX lithium share is the fastest mover of the ASX 200 today.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why is this ASX 300 lithium stock sinking 17% today?

What's going on with this lithium stock today? Let's find out.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Materials Shares

$10k invested in Pilbara Minerals shares 5 years ago is now worth…

Let's see if this lithium miner delivered the goods for investors.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Pilbara Minerals shares jumps 10% on big news

This lithium miner is having a day to remember on Wednesday. But why?

Read more »

Three miners looking at a tablet.
Materials Shares

Why Bell Potter says this ASX mining stock is a top buy

Let's see which stock the broker is tipping to deliver big returns.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Materials Shares

Down 39% in a year, why IGO shares still look overpriced

A leading expert doesn’t believe IGO shares are out of the woods just yet.

Read more »