Suvo Strategic Minerals Ltd (ASX:SUV) has secured $1.5 million in funding without diluting its share value through debt and product repayment, which will go towards working capital needs to meet sales orders and the company’s emerging strategy of controlled high-margin growth through product development.
The funding takes the form of $1 million in debt funding on terms of 10% interest, secured against Suvo’s non-core land asset and repayable in 12 months.
The other $500,000 comes from prepayments for hydrous kaolin from SUV’s Pittong operation in Victoria from Tasmanian customer Norske Skog Boyer.
Advancing kaolin strategy
“Suvo is delighted to fund the working capital required to support our kaolin strategy,” Suvo Strategic Minerals interim CEO Bojan Bogunovic said.
“We have continued to make significant progress in relation to all workstreams including the revalidation of Pittong’s 50,000 tonnes per annum production capacity, defining and augmenting our sales and distribution strategy into Asia and working with our Australasian clients to strengthen our partnerships moving forward.
“Additionally, we have identified and commenced work on a number of product development opportunities which have the potential to significantly improve the financial metrics of our Pittong operation.”