Sovereign Metals Raises AU$40 Million to Advance Kasiya Project

Highlights:

• Sovereign Metals Limited (ASX: SVM) secured AU$40 million through a placement of 47,058,824 new shares at AU$0.85 per share.
• Funds will support the Kasiya Rutile-Graphite Project in Malawi, including permitting, feasibility studies, and corporate expenses.
• Placement settled at a 12.8% discount to the last closing price, with strong backing from institutional investors.

Strong Institutional Backing for Capital Raise

Sovereign Metals Limited (ASX: SVM) has successfully secured AU$40 million through a placement of 47,058,824 new fully paid ordinary shares at AU$0.85 per share. The capital raise, which attracted strong interest from both new and existing institutional investors, is set to support the development of the Kasiya Rutile-Graphite Project in Malawi.

Funds to Drive Project Development

The proceeds from this placement will be directed towards permitting, feasibility studies, and general corporate expenses related to the Kasiya project. The project, which holds significant rutile and graphite resources, is considered a key asset in meeting the growing demand for critical minerals in global markets.

Market Pricing and Discount Details

The share issue price of AU$0.85 per share reflects a 12.8% discount to Sovereign Metals’ last closing price of AU$0.975, and an 8.1% discount to its 15-day volume-weighted average price (VWAP) of AU$0.925. Despite the discounted offering, investor confidence in the company's long-term potential remains strong, as evidenced by robust participation in the placement.

Settlement and Key Players in the Placement

The settlement of the placement is expected on April 1, 2025, with the issuance of new shares scheduled for April 2, 2025, under ASX Listing Rule 7.1. Petra Capital Pty Ltd served as the Sole Lead Manager and Bookrunner, with additional participation from Stifel Nicolaus Europe Limited, SCP Resource Finance LP, and Acova Capital Pty Ltd.

At the time of writing, Sovereign Metals’ stock remains a focal point for investors watching the development of the Kasiya project and the broader outlook for critical minerals supply.

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