PERTH (miningweekly.com) – ASX-listed junior Sovereign Metals is hoping to raise A$4.3-million through a share placement to advance the development of its Malingunde flake graphite project, in Malawi.
The company on Friday reported that it had completed a bookbuild and secured commitment from investors for 66.7-million shares, at a price of 6.5c each, which represented a discount of 11% to the company’s 30-day volume weighted average share price.
In addition to the share placement, Sovereign will also undertake a share purchase plan to raise an additional A$1-million, giving shareholders the opportunity to subscribe for up to A$14 950 in new shares.
“We are pleased with the strong support received for this placement from overseas and domestic investors. It reflects the quality of the Malingunde flake graphite project and the emerging significant rutile potential recently identified,” said Sovereign MD Julian Stephens.
“The funds will allow Sovereign to accelerate a graphite definitive feasibility study and advance the rutile potential,” he added.