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Highlights

  • Sovereign Metals secures A$40 million through a strongly supported share placement.
  • Funds will support development activities at the Kasiya Rutile-Graphite Project in Malawi.
  • Placement includes global institutional investors and is set to settle on April 1, 2025.

Sovereign Metals Limited (ASX: SVM; AIM: SVML; OTCQX: SVMLF) has successfully secured A$40 million in gross proceeds through a placement of 47,058,824 new fully paid ordinary shares at an issue price of A$0.85 per share. The placement, which was met with strong support from both new and existing shareholders, including large global institutional investors, aims to fund key development activities for the company's Kasiya Rutile-Graphite Project (Kasiya) in Malawi.

The proceeds from this placement will be allocated toward a variety of critical activities related to the Kasiya Project. These include permitting processes, technical studies, and general working capital, alongside other corporate purposes to further the company’s growth and project development.

The issue price of A$0.85 represents a 12.8% discount to the last closing price of A$0.975, and an 8.1% discount to the 15-day volume-weighted average price (VWAP) of A$0.925. The strong investor interest in the placement reflects confidence in the Kasiya Project’s future prospects.

Petra Capital Pty Ltd acted as Sole Lead Manager and Sole Bookrunner for the placement, with participation from clients of Stifel Nicolaus Europe Limited, SCP Resource Finance LP, and Acova Capital Pty Ltd. The placement is scheduled to settle on April 1, 2025, and the new shares will be issued around April 2, 2025, in accordance with ASX Listing Rule 7.1.

The funding raised will enable Sovereign Metals to continue advancing the Kasiya Rutile-Graphite Project, a key asset for the company, with the goal of progressing towards the next stages of its development.