Sayona Mining Ltd (ASX: SYA) shares won't be going anywhere on Friday.
That's because this morning, the lithium developer requested that its shares be placed into a trading halt.
What's going on with Sayona Mining shares?
Prior to the market open, Sayona Mining requested a trading halt so that it could undertake a capital raising. Its request states:
[Sayona Mining] requests an immediate Trading Halt on its securities pursuant to ASX Listing Rule 17.1, pending the release of an announcement regarding a capital raising by the Company.
SYA requests that the Trading Halt remain in place until such time as it makes an announcement to the market regarding the capital raise, but in any event not beyond the commencement of normal trading on 30 May 2023. SYA is not aware of any reason why the Trading Halt should not be granted.
No further details have been provided by the company, but media reports claim the company is seeking to raise $200 million from investors.
According to the AFR, the $200 million will be used primarily to fund production and for working capital at its lithium projects in Canada. In addition, some of the proceeds are expected to be directed towards feasibility studies at the Moblan project in Québec's Northern Hub.
It remains unclear what price Sayona Mining is looking to raise the funds at, but somewhere in the region of 17 cents to 18 cents per new Sayona Mining share seems quite likely.
Stay tuned for more when the company releases its announcement.
