Sovereign Metals Ltd is set to raise A$40 million through a placement of 47,058,824 new fully paid ordinary shares at an issue price of A$0.85 per share.
The issue price represents a 12.8% discount 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.
The capital raising was strongly supported by both new and existing shareholders, including large global institutional investors.
Funds from the placement will support ongoing development activities at the company’s flagship Kasiya Rutile-Graphite Project in Malawi, including permitting, technical studies, general working capital requirements, and other corporate purposes.
Settlement is expected on April 1, 2025, with the issue of shares expected on or about April 2, 2025.
Sovereign Metals confirms high-purity graphite from Kasiya project suitable for premium applications
A couple of weeks ago, Sovereign confirmed that coarse flake graphite from its Kasiya Rutile-Graphite Project in Malawi can be purified to high levels, underscoring its potential for use in premium-grade applications.
Independent testwork conducted by Germany-based ProGraphite GmbH achieved a graphite purity of 99.95% using acid purification and 99.98% using alkaline purification. These results exceed the typical loss on ignition (LOI) target of greater than 99.0%.
The outcomes support the potential for Kasiya’s coarse flake graphite to be used in high-margin applications such as powder metallurgy, isostatically-pressed refractory products, and high-grade expanded graphite.
The effectiveness of both acid and alkaline purification processes also indicates possible downstream advantages for future customers, including reduced reagent usage and lower waste generation.