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Suvo Strategic Minerals (ASX:SUV) eyes $2m for green initiatives

ASX News, Materials
ASX:SUV      MCAP $46.43M
08 December 2022 10:59 (AEDT)

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Suvo Strategic Minerals (SUV) has tapped investors for $2 million to advance its green initiatives.

Emerging from a trading halt, the company on Thursday launched a share placement comprising 50 million shares offered to new and existing sophisticated investors at four cents per share.

Shareholders participating in the raise will also receive a one-for-four free attaching unquoted option exercisable at ten cents and expiring on December 6, 2025.

Suvo will use the fresh capital to advance studies to develop supporting infrastructure that will enable the development of a new range of “premium products”, such as metakaolin.

Suvo has also planned to begin studies and testwork on bulk samples from drilling on private land at Eneabba to refine its understanding of the asset.

Moreover, the fresh funds will boost working capital to assist with a plant upgrade and optimisation at SUV’s Pittong project in Victoria, which is nearing completion.

Suvo Executive Chairman Henk Ludik said the company remained “absolutely committed” to operating its kaolin mine at Pittong, and the current work was “on track” to more-than-double production early next year.

“Additionally, we continue our unwavering pursuit for the development of new premium products, such as metakaolin and green cement, including our Silica sands asset at Eneabba,” Mr Ludik said.

The issue price of the placement shares represents a 14.9 per cent discount to the company’s 15-day volume weighted average price of 4.7 cents and a 13 per cent discount to its share price prior to the last trading halt.

Company shares were down 10.87 per cent to 4.1 cents at 10:58 am AEDT.

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