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- Sovereign Metals (SVM) has tapped institutional investors for a tidy $8 million in a placement backed by Sprott Group affiliates
- Sovereign offered up 20,000,000 new company shares at 40 cents apiece under the placement, with a one-for-two unlisted option attached to each
- The fresh capital is set to fuel exploration and drilling endeavours at the company’s flagship rutile Kasiya deposit in Malawi
- The news also follows a new discovery target within the region, which Sovereign says shows high-grade mineralisation and touts a nine-kilometre strike length
- Sovereign is trading steady at 45 cents per share on Tuesday morning
Sovereign Metals (SVM) has tapped institutional investors for a tidy $8 million in a placement backed by Sprott Group affiliates.
The placement
All up, 20,000,000 new Sovereign shares were on offer for 40 cents apiece, with a one-for-two attaching unlisted option at an exercise price of 50 cents and a 12-month expiry.
The placement was headed up by global precious metals investment firm Sprott Capital Partners, with affiliates of the Sprott Group also participating in the placement.
The fresh capital is set to fuel exploration and development activities at the company’s strategic rutile province in Malawi, with a maiden mineral resource for its flagship Kasiya rutile deposit tipped for the end of this quarter.
Rutile is a titanium oxide mineral typically used for manufacturing refractory ceramics and in the production of titanium metal. It can also be crushed into a powder form and used as a white pigment in paint.
The discovery
The fundraising comes in the wake of a new high-grade rutile discovery in close proximity to Sovereign’s flagship Kasiya deposit in Malawi.
According to Sovereign, the new Nsaru deposit is showing high-grade mineralisation from the surface with widths of up to 5.5 kilometres across and a current strike length of about nine kilometres.
Looking ahead, Sovereign is set to continue drilling at Kasiya and the surrounding area to identify extensions and discover new regional mineralised zones.
Sovereign Metals is trading steady at 45 cents per share at the open of Tuesday’s trading session.
