REG - Sovereign Metals Ltd - Sovereign Completes A$40 Million Placement

Sovereign MetalsAnnouncement

26/03/2025 07:16

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RNS Number : 1688C  Sovereign Metals Limited  26 March 2025

Not for release to US wire services or distribution in the United States

 

NEWS RELEASE I 26 MARCH 2025

 

SOVEREIGN COMPLETES A$40 MILLION PLACEMENT

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) (Sovereign or the
Company) is pleased to announce that it has received firm commitments for a
placement of 47,058,824 new fully paid ordinary shares at an issue price of
A$0.85 per share (New Shares) to raise gross proceeds of A$40,000,000 before
costs (Placement).

The Placement was strongly supported by new and existing shareholders,
including large global institutional investors.

Proceeds from the Placement will be used for development activities at the
Company's Kasiya Rutile-Graphite Project (Kasiya or the Project), located in
Malawi, including permitting, studies, general working capital, and other
corporate purposes.

The issue price of A$0.85 per New Share represents a 12.8% discount to the
last close of A$0.975 and an 8.1% discount to the 15-day volume weighted
average price of A$0.925.

Petra Capital Pty Ltd acted as Sole Lead Manager and Sole Bookrunner. Clients
of Stifel Nicolaus Europe Limited, SCP Resource Finance LP and Acova Capital
Pty Ltd also participated in the Placement.

The Placement is expected to settle on 1 April 2025, and Company will issue
the New Shares on or about 2 April 2025.

 Enquiries
 Frank Eagar, Managing Director & CEO

 South Africa / Malawi

 +27 21 140 3190

 Sapan Ghai, CCO

 London

 +44 207 478 3900

 

 Nominated Adviser on AIM and Joint Broker     
 SP Angel Corporate Finance LLP               +44 20 3470 0470
 Ewan Leggat

 Charlie Bouverat
                                               
 Joint Brokers                                 
 Stifel                                       +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Berenberg                                    +44 20 3207 7800
 Matthew Armitt                                
 Jennifer Lee                                  

 Buchanan                                     + 44 20 7466 5000

 

AIM Admission

Application to AIM will be made for the 47,058,824 New Shares to be admitted
to trading on AIM (AIM Admission). It is expected that AIM Admission will take
place and dealings will commence on AIM on or around 8.00 a.m. on 2 April
2025.

Total Voting Rights

Immediately following the AIM Admission, the Company's issued share capital
will be 646,938,703 shares, with each share carrying the right to one vote.
The Company does not hold any Ordinary Shares in treasury. The total voting
rights figure immediately following the AIM Admission of 646,938,703 may be
used by shareholders (and others with notification obligations) as the
denominator for the calculations by which they will determine whether they are
required to notify their interest in, or a change to their interest in, the
Company under the Disclosure Guidance and Transparency Rules.

Following the issue of Shares, the Company will have the following securities
on issue:

·      646,938,703 fully paid ordinary shares (of no par value);

·    10,977,500 unlisted performance rights subject to the "Definitive
Feasibility Study Milestone" expiring on or before 31 October 2025;

·     4,992,500 unlisted performance rights subject to the "Grant of
Mining Licence Milestone" expiring on or before 31 March 2026; and

·      6,190,000 unlisted performance rights subject to the "Final
Investment Decision Milestone" expiring on or before 30 June 2026.

 

Not an offer in the United States

This announcement has been prepared for publication in Australia and may not
be released to US wire services or distributed in the United States. This
announcement does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in the United States or any other jurisdiction. Any
securities described in this announcement have not been, and will not be,
registered under the US Securities Act of 1933 and may not be offered or sold
in the United States except in transactions exempt from, or not subject to,
the registration requirements of the US Securities Act and applicable US state
securities laws.

Forward Looking Statements

This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
Sovereign's expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. Sovereign makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.

 

The information contained within this announcement is deemed by Sovereign to
constitute inside information as stipulated under the Regulation 2014/596/EU
which is part of domestic law pursuant to the Market Abuse (Amendment) (EU
Exit) Regulations (SI 2019/310) ("UK MAR"). By the publication of this
announcement via a Regulatory Information Service, this inside information (as
defined in UK MAR) is now considered to be in the public domain.

 

 

 

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