Suvo Strategic Minerals Ltd (ASX:SUV) has raised $2 million via a share placement at $0.04 per share to new and existing sophisticated investors.
This has boosted the company's finances to advance studies and development opportunities relating to its green initiatives and also provided additional working capital to perform studies and test work on bulk samples from drilling recently completed on the cleared private land at Eneabba Silica Sand Project in WA.
The company notes the upgrade and optimisation of its Pitton Kaolin Project in Victoria is on track, utilising existing funds and remains due for completion in Q1 CY23.
“Management remains absolutely committed to our operating kaolin mine at Pittong, with the upgrade and optimisation review remaining on track to more than double production early next year,” Suvo executive chairman Henk Ludik said.
“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.”
Down to business
With the money in the bank, Suvo will be able to advance studies relating to the development of supporting infrastructure. This will allow the potential development of a range of new premium products such as metakaolin.
Suvo will also begin studies and test work on the bulk samples from the recent drilling campaign on the cleared private land at Eneabba, which will enable it to refine its understanding of this "world-class" asset.
The additional working capital will also ensure that ongoing value is created across Suvo’s wider portfolio, as the Pittong Plant upgrade and optimisation nears completion. This work is on schedule for completion in Q1 CY23 and remains the company's priority.
Recent executive appointments in operations and logistics also mean the company is well placed to more than double production.
More about the raise
Suvo will issue 50 million fully paid ordinary shares to new and existing sophisticated investors, including 12.5 million0 unquoted options exercisable at $0.10 and expiring December 6, 2025, raising a total of A$2 million before costs.
A discount on the new options of up to 50% is available dependent on the exercise date.
The issue price of $0.04 per share represents a discount of 14.9% to Suvo’s 15-day volume weighted average price (VWAP) of $0.047 and a 13.0% discount to the last close price of $0.046.
Settlement is proposed for Tuesday, December 13, with shares allotted on Wednesday, December 14.