The Sayona Mining Ltd (ASX: SYA) share price has been having a tough time this week.
Since the end of last week, the lithium share has lost 28% of its value.
This follows the release of a disappointing pre‐feasibility study (PFS) for the 75% owned North American Lithium (NAL) operation in Québec, Canada.
That study revealed a net present value of the project that was well short of the market's expectations.
Sayona Mining share price halted
The Sayona Mining share price won't be continuing its slide on Wednesday after the company requested a trading halt.
According to the request, Sayona Mining has requested the immediate halt pending the release of an announcement regarding a capital raising.
It has requested the trading halt remain in place until the earlier of the release of the announcement or the commencement of normal trading on Friday 27 May.
Capital raising
With the Sayona Mining share price down 28% this week, the timing of this capital raising is particularly disappointing for shareholders and is likely to be highly dilutive.
According to the AFR, the company is seeking to raise $190 million from investors at a price of 18 cents per new share. This represents a 12.2% discount to the last close price and a massive 35.7% discount to where the Sayona Mining share price ended last week.
The reports states that these funds will be used to support the restart of the aforementioned NAL project, development activities at its Authier mine, exploration at the Moblan project, and the assessment of downstream processing alternatives. All these activities are located in Canada's Quebec, where the company is aiming to build a lithium hub.
