Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) has secured A$40 million through a placement of 47,058,824 new ordinary shares at A$0.85 each. The placement garnered strong interest from both existing and new shareholders, including significant global institutional investors. The capital raised will be directed towards advancing the development of Sovereign’s Kasiya Rutile-Graphite Project in Malawi. Specific allocations include funding for permitting processes, conducting studies, providing general working capital, and covering other corporate expenses related to the Kasiya project.
The issue price reflects a 12.8% discount compared to the last closing price of A$0.975 and an 8.1% discount to the 15-day volume-weighted average price of A$0.925.
Petra Capital Pty Ltd served as the Sole Lead Manager and Sole Bookrunner for the placement. Stifel Nicolaus Europe Limited, SCP Resource Finance LP, and Acova Capital Pty Ltd clients also participated in the placement.
The placement is scheduled to settle on April 1, 2025, with the issuance of the new shares anticipated around April 2, 2025, under ASX Listing Rule 7.1.
