Western Australia-based Sovereign Metals has secured commitments for $15 million (gross proceeds) from UK, European and North American institutional investors, enabling it to offer 22.2 million new ordinary shares of the company.
The Thematica Future Mobility UCITS Fund, a Luxembourg-based green energy fund with a strong emphasis on critical raw materials and ESG, was the cornerstone participant in the well-supported placement, which will fund exploration and development activities at the company’s flagship Kasiya Project.
Kasiya is the world’s largest natural rutile deposit and one of the largest natural graphite deposits globally underpinning its potential to be a major source of sustainable critical raw materials to contribute to decarbonisation and the energy transition. An enhanced scoping study for Kasiya is advancing and is expected to be completed by mid-2022.
Sovereign managing director Julian Stephens said it was pleasing that Thematica saw the enormous potential of Kasiya: “not only to be a major world supplier of low carbon footprint natural rutile, but also a supplier of low carbon footprint flake graphite, a vital component in lithium-ion batteries used in electric vehicles,” he said.
“ESG and green energy are now prominent investment themes, particularly in Europe and North America.
“Thematica’s investment represents a significant endorsement of Sovereign’s ESG credentials and the potential for Kasiya to deliver critical raw materials vital for the world’s energy transformation.
“Our focus will now turn to the updated scoping study which is targeted for completion in the coming months and will incorporate the significant Kasiya resource increase announced in April.”
The issue price is 67 cents per share plus a one-for-two unlisted option with an exercise price of 80 cents and 12-month expiry (placement).