Sovereign Metals Limited plans A$40m capital raise

Published 24/03/2025, 09:54
Sovereign Metals Limited plans A$40m capital raise

SYDNEY - Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF), an Australian mining company, responded to recent media speculation by confirming its intention to raise A$40 million through a share placement priced at A$0.85 each. The announcement follows a report in the Australian Financial Review on Monday suggesting a potential capital raising effort by the company.

The funds from the placement are designated for the development costs of the Kasiya Rutile Graphite Project, which will include expenditures for permitting, studies, and other related costs, as well as working capital and offer costs. Petra Capital has been engaged as the Lead Manager and Sole Bookrunner for the capital raising process.

While the company has stated there is no certainty the Fundraise will be completed or what the final terms might be, shares of Sovereign Metals on the Australian Securities Exchange will remain in a voluntary trading halt until an announcement is made regarding the outcome of the capital raise or until the opening of trade on Wednesday, 26 March 2025. However, trading of the company’s ordinary securities will continue as normal on AIM, which is operated by the London Stock Exchange (LON:LSEG), during this period.

The company has made it clear that further announcements will be made as appropriate and has cautioned that this release may contain forward-looking statements that involve risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed.

This information, considered inside information under UK Market Abuse Regulation, is now in the public domain following this announcement. Sovereign Metals Limited has provided no further details on the potential impact of the capital raising on its operations or financial performance.

The announcement is based on a press release statement from Sovereign Metals Limited.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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