SVM completes placement to fund Malingunde technical studies

Published at Dec 19, 2017, in Mining

FinFeed presents this information for the use of readers in their decision to engage with this product. Please be aware that this is a very high-risk product. We stress that this article should only be used as one part of this decision-making process. You need to fully inform yourself of all factors and information relating to this product before engaging with it.

Sovereign Metals (ASX:SVM) today announced that it has completed the second tranche of its previously announced placement of 59.1 million shares at an issue price of $0.11 per share to raise A$6.5 million.

Proceeds from the placement will be used to expedite development of SVM’s 100 per cent owned Malingunde Flake Graphite Project in Malawi, enabling completion of all technical works associated with pre-feasibility and definitive feasibility studies.

The second tranche, comprising 20.1 million shares to institutional and sophisticated investors to raise gross proceeds of A$2.2 million, was completed today following shareholder approval at a general meeting held on 8 December.

SVM is hoping to tap into the considerable upside within the fast-growing energy storage sector, made possible by lithium-ion batteries.

Overall this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.

Earlier this year, the Perth-based small-cap announced a maiden resource for Malingunde, confirming the project as the world’s largest reported soft saprolite-hosted graphite resource. The project has an Indicated and Inferred resource of 28.8 million tonnes at 7.1 per cent total graphitic carbon (TGC), including a high-grade component of 8.9 million tonnes at 9.9 per cent TGC.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Thanks for subscribing!