Sovereign Metals Ltd (ASX:SVM, AIM:SVML) will raise A$15 million from UK, European and North American institutional investors as it looks to further develop its Kasiya Project, the world’s largest natural rutile deposit and one of the world’s largest flake graphite resources.
Through this project, SVM aims to be a major source of sustainable critical raw materials to contribute to decarbonisation and the energy transition.
An enhanced scoping study for Kasiya is advancing and is expected to be completed by mid-2022.
The company has received firm commitments to raise the cash, with the placement cornerstoned by Thematica Future Mobility UCITS Fund, a European green energy fund which offers exposure to companies to benefit from the transition to clean and sustainable energy solutions. Thematica has a strong emphasis on Critical Raw Materials and ESG.
Investors will subscribe for 22,210,268 new ordinary shares of Sovereign at an issue price of A$0.67, plus a one-for-two unlisted option with an exercise price of A$0.80- and 12-month expiry.
Committed to green energy initiatives
“We are extremely pleased that prominent green energy investors such as Thematica see the enormous potential of Kasiya, not only to be a major world supplier of low carbon footprint natural rutile, but also a supplier of low carbon footprint flake graphite which is a vital component in lithium-ion batteries used in electric vehicles,” Sovereign’s managing director Dr Julian Stephens said.
“ESG and green energy are now prominent investment themes, particularly in Europe and North America. Thematica’s investment represents a significant endorsement of Sovereign’s ESG credentials and the potential for Kasiya to deliver critical raw materials vital for the world’s energy transformation.
“Our focus will now turn to the updated scoping study which is targeted for completion in the coming months and will incorporate the significant Kasiya resource increase announced in April.”