ASX-LISTED lithium company Sayona Mining is to bid for the North American lithium mine in Québec, Canada, after securing $2.75m of funding from a New York-based investor.

Sayona Mining said the funding injection reflects increased investor confidence in the lithium sector.

In a statement, the company said: “The new investment follows an upturn in the lithium sector since the start of 2020, and as Sayona builds momentum in its bid for the NAL mine, which it aims to make the centrepiece of a lithium hub comprising a concentrator supplied by two or potentially three ore bodies.”

Sayona said it will use the funds from Obsidian Global to press ahead with its bid for NAL, and to advance its flagship Authier lithium project, also in Québec.

Sayona Mining has entered into a convertible notes agreement with Obsidian Global allowing the lithium company to issue notes convertible into shares for up to the full amount of funding.