Sovereign Metals Limited (ASX:SVM, AIM:SVML) has completed a successful £1 million (~A$1.9 million) placement from UK investors following its listing on the AIM market of the London Stock Exchange.
SVM will issue 3,571,428 ordinary shares at an issue price of £0.28 on completion of the placement.
The company’s aim was not just to increase its bank balance to further exploration activities at its Kasiya Rutile Project, but also to enhance its shareholder base on the AIM market.
Rutile scoping study
Last week, SVM announced it had tabled a positive scoping study for the Kasiya Rutile Project in Malawi — a report it believes confirms its asset as a globally significant rutile play.
READ: Sovereign Metals unveils positive scoping study for “globally significant” Kasiya Rutile Project
The initial scoping study demonstrates the potential for a multi-decade mine providing a stable, low carbon footprint supply of highly sought-after rutile and graphite.
Results include a post-tax NPV8 of US$861 million and IRR of 36% with average annual EBITDA over 25 year life-of-mine of US$161 million for a capital cost of US$332 million.
What’s next
SVM expects to hit several milestones in the first half of 2022 including:
- Significant growth in the project’s mineral resource estimate;
- Revised life cycle assessment to quantify environmental benefits of Kasiya; and
- Updated scoping study.