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Sayona Mining shares surge on Chinese battery discussions

Shares have traded up as much as 50% intra-day to $0.042.
China flag with battery on it
Sayona's flagship asset is its Authier Lithium Project located in Canada

Sayona Mining (ASX:SYA) has signed a non-binding memorandum of understanding (MoU) with leading China-based battery manufacturer, Huan Changyuan Lico Co Ltd.

Huan Changyuan, a subsidiary of the Fortune 500 company, China Minmetals Group, is a battery research, development, and production company.

The MoU paves the way for advancing discussions to facilitate a development alliance exploring marketing, technical and financial opportunities for the Authier project.

Corey Nolan, CEO, commented: “The company has been exploring a number of options on how it best realises value from the Authier project.

“The alliance with Changyuan represents a timely, exciting path forward as the company moves towards completing its definitive feasibility and meeting its objective of producing first concentrates in 2019/2020, and capitalising on the projected high price environment for spodumene concentrates”.

MoU details

The MoU will support discussions exploring marketing, technical, and financial development options for the Authier lithium project including:

- Huan Changyuan purchasing up to 100,000 tonnes of spodumene concentrate per annum;
- Development partnerships for the value-adding of the concentrates into lithium carbonate and/or lithium hydroxide in either China or Canada; and
- Funding and investment opportunities for Sayona and the Authier project.

Huan Changyuan Lico Co Ltd

In 2016, Huan Changyuan produced more than 16,000 tonnes of battery cathode materials and is expanding its production capacity to 36,000 tonnes in 2018.

The main products produced include lithium cobalt oxide and lithium manganese oxide batteries, and ternary composite lithium-ion cathode materials. 

Background

Sayona’s primary strategy is to focus on completing the studies required to commence the development of the Authier Lithium Project, including the definitive feasibility study.

Authier is a near-term development project and cash-flow generation opportunity.

Sayona is also preparing to start a field exploration program for conglomerate hosted gold in the Pilbara region of Western Australia.

READ NOW: Sayona Mining’s shares rise on conglomerate gold opportunity in the Pilbara

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