Australian Sovereign Metals Limited announces that it has received firm commitments for a placement of 47,058,824 new fully paid ordinary shares at an issue price of A$0.85 per share (New Shares) to raise gross proceeds of A$40,000,000 before costs (Placement).
The Placement was strongly supported by new and existing shareholders, including large global institutional investors.
Proceeds from the Placement will be used for development activities at the Company’s Kasiya Rutile-Graphite Project (Kasiya or the Project), located in Malawi, including permitting, studies, general working capital, and other corporate purposes.
Sovereign discovered Kasiya in 2019 after identifying the potential of a new rutile province in Malawi. Today, Kasiya stands out as the world’s largest known natural rutile deposit and second largest known flake graphite deposit and holds the accolade of one of only 11 Tier 1 mining projects discovered in the last decade.
Sovereign plans to produce a 96% graphite concentrate at an incremental cost of $241/tonne free on board, according to a prefeasibility study.
