Sienna Resources set for C$2mln fundraise to develop its projects

The group plans to issue up to 10mln units at 20 cents each for gross proceeds of up to C$2mln.
Sienna Resources set for C$2mln fundraise to develop its projects
It plans to issue up to 10mln units at 20 cents each for gross proceeds of up to C$2mln

Metals explorer Sienna Resources Inc (CVE:SIE) unveiled plans to bring in up to C$2mln through a placing to develop its cobalt and lithium projects.

The firm estimates it will allocate the funds as half into work programs, 48% working capital and 2% loans payable.

It plans to issue up to 10mln units at 20 cents each for gross proceeds of up to C$2mln.

Each unit consists of one share and one transferable share purchase warrant, exercisable at 30 cents for five years.

It's been a busy month for the Toronto-listed share.

On December 4, it said it would acquire a new cobalt-nickel-copper prospect in Sweden.

Slattberg is a historic mining camp hosting cobalt-nickel-copper-rich massive sulphide mineralization that occurs within a 2km belt of historic nickel-copper mines and Sienna has struck an exploration and option agreement with EMX Royalty Corp for the site.

Sweden is at the forefront of a boom in the mining industry and boasts a low corporate income tax rate, a proactive geological survey, and broad public support for export-led mining.

"We are very pleased to receive approval for this exciting cobalt-nickel-copper prospect," said Jason Gigliotti, Sienna's president.

"Cobalt prices have just crossed fresh nine year highs as of yesterday, and we look forward to advancing this prospect.

"There are 12 historic mines on this property and with modern mining approaches, we are very optimistic about what this project could contain.

"We expect to be drilling early 2018 as the project is drill ready now.

Sienna noted that Northvolt is planning to be the largest battery factory in Europe at roughly the same size as Tesla's (NASDAQ:TSLA) gigafactory.

"Northvolt wants to locally source as much battery material as possible such as cobalt and nickel," said Gigliotti.

"There are now more than 20 mega battery factories currently being planned or constructed globally, creating a massive demand on the battery metals such as lithium, cobalt and nickel.

"Sienna is focused on exploring and developing projects that will meet this insatiable demand."

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