Sovereign Metals Limited (ASX:SVM) (FRA:SVM) has received strong validation of its strategy focused on the Kasiya Rutile Project in Malawi with substantial shareholder Sprott Inc (TSE:SII) (NYSE:SII) (FRA:A781) lifting its holding to 10.41%.
The prominent Toronto-based asset management firm with a track record of identifying and funding successful early-stage resource projects across the globe now holds more than 43 million shares.
Series of purchases
Sprott and affiliates have extended the holding from 8.77% through a series of on-market purchases and participation in Sovereign’s $8 million placement in April 2021 that was strongly supported by Northern Hemisphere based institutional investors.
The Sprott investments in SVM are held by Sprott Asset Management USA Inc., Exploration Capital Partners 2014 LP and Sprott Capital Partners LP.
Sovereign’s placement saw 20 million shares issued at A$0.40 per share plus a one-for-two unlisted option with an exercise price of A$0.50 and a 12-month expiry with Sprott Capital Partners LP acting as exclusive financial advisor.
Key appointment
Last week Sovereign appointed Paul Marcos, an engineering and consulting expert with considerable mineral sands experience, as head of development for the Kasiya project.
As head of development, Marcos will lead and manage key technical components of the project, including the ongoing scoping study due for completion this year and also for future feasibility study programs.
Managing director Julian Stephens said: “We are very pleased to welcome Paul to our team. He brings significant relevant technical experience and enthusiasm for mineral sands.”
“A huge endorsement”
He said: “Attracting individuals of this calibre to the Sovereign team is a huge endorsement of the Kasiya Project.
“Having managed process engineering and given his involvement in feasibility studies for a number of African mineral sands projects, Paul is uniquely qualified to lead key technical components in developing the Kasiya Project.”
Following the maiden mineral resource estimate delivered in June 2021 which confirmed the Kasiya Project as one of the world’s largest undeveloped rutile projects, this appointment underpins Sovereign’s commitment to rapidly advance the project.
A scoping study is targeting a large-scale natural rutile operation to fill some of the existing supply deficit with the purest and most environmentally sustainable titanium feedstock.