Sovereign Metals (ASX:SVM) is heading to market with a capital raising.
Today the ASX has granted the company a trading halt, with its shares placed in pre-open.
Most recently the company completed an initial trench sampling program at the newly discovered Dedza Mountain East flake graphite prospect.
Importantly - substantial widths of high-grade flake graphite was intersected.
Results included: 14m at 10.8% TGC including 6m at 12.1% TGC; 18m at 9.5% TGC; 20m at 10.3% TGC including 10m at 11.3% TGC; and 14m at 9.3% TGC.
Adding interest, SVM's graphite interests in Malawi are located 500 kilometres west of Syrah Resources’ (ASX:SYR) massive Balama East Deposit, which is acknowledged as the largest known graphite deposit in the world.
Saprolite-hosted flake graphite mining operations are likely to have significant advantages over hard rock operations, including the potential for lower mining costs, reduced capex and opex, and may also result in the preservation of the coarser flake.
The halt will remain in place until the opening of trade on Wednesday 21st May 2014, or earlier if an announcement is made to the market.
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