The Sayona Mining Ltd (ASX: SYA) share price is struggling today amid the announcement of a new strategic acquisition by the emerging lithium producer.
Sayona shares are down 6.92% and are currently trading at 24.2 cents each. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.37% in the red today.
Let's take a look at what is going on with the Sayona Mining share price.
Lithium shares struggle
Sayona Mining is not falling as much as some of its ASX lithium share peers today. The Core Lithium Ltd (ASX: CXO) share price is sinking nearly 17%, while Allkem Ltd (ASX: AKE) shares are descending by 13%. The Pilbara Minerals Ltd (ASX: PLS) share price is down 11%.
Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is 2.06% in the red today. This follows a similar trend in US markets overnight.
The Livent Corp (NYSE: LTHM) share price slipped 4.16% on Monday in the US, while Sociedad Quimica y Minera de Chile (NYSE: SQM) shares descended 5.3%. Albemarle Corporation (NYSE: ALB) shares fell 2.78%.
Investors in Australia also may be selling off some of their gains today after ASX lithium shares had a top run on Monday.
Today, Sayona Mining advised of a new strategic acquisition after the market closed on Monday. Sayona subsidiary North American Lithium (NAL) has entered an earn-in agreement with Jourdan Resources (TSXV: JOR) related to the Vallee Lithium Project in Quebec.
Under the deal, NAL will acquire 20 claims (out of a total of 48 spanning 1,997 hectares) with a right to earn a 51% stake in the remaining 28 claims of the project.
By spending C$4 million on exploration, NAL can gain a 25% stake in the project, while up to 51% interest can be attained by spending C$10 million in a two-year period.
Commenting on today's news, Sayona Mining managing director Brett Lynch said:
Sayona continues to pursue opportunities for expansion and this is an excellent opportunity to swiftly expand NAL's potential resource base, paving the way for an increase in NAL's future mine production capacity.
Sayona Mining share price snapshot
The Sayona Mining share price has soared nearly 47% in the past year while it has surged 87% year to date.
For perspective, the ASX 200 has fallen 4.5% in the past year.
Sayona has a market capitalisation of more than $2 billion based on the current share price.
