SVM completes placement to fund Malingunde technical studies
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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.