Australia-based lithium producer Sayona Mining has completed the sale of its shareholding in Canadian mining company Troilus Gold for nearly $8.8m.

The transaction involved the disposal of 19.2 million shares at C$0.63 each through a block trade managed by Desjardins Capital Markets.

The sale of Troilus Gold shares has generated gross proceeds of around A$13.7m for Sayona Mining.

This move comes after a series of smaller public market share sales, culminating in Sayona's exit from Troilus Gold ownership.

Sayona initially invested in Troilus Gold at the close of 2022, acquiring a significant land position near the Moblan Lithium Project.

This acquisition expanded Sayona's land holdings by nearly 1,000km². The shares were purchased at an average cost of C$0.49 per share, allowing Sayona to realise a modest capital gain from the sale.

The divestment from Troilus Gold aligns with Sayona's strategy to prioritise the development of the Moblan Lithium Project, which is emerging as a Tier 1 asset.

Additionally, the company is focusing on increasing production at the North American Lithium (NAL) operation.

NAL, which was acquired by Sayona Québec in partnership with Piedmont Lithium in August 2021, is a key asset in Sayona's portfolio. Sayona Québec holds a 75% stake in NAL, with the remaining 25% owned by Piedmont Lithium.

Sayona’s Interim CEO James Brown said: “The sale of the Troilus shares is totally aligned with our commitment to maximise value for shareholders through the development and production of our Quebec lithium assets at Moblan and NAL.

“The original investment in Troilus helped facilitate the acquisition of a significant exploration package adjacent to Moblan in the Eeyou Istchee James Bay Hub and having served that purpose it is prudent to recycle the capital for other uses.”