Sovereign Metals Limited Placement to UK Investors (4663W)
December 22 2021 - 2:00AM
UK Regulatory
TIDMSVML
RNS Number : 4663W
Sovereign Metals Limited
22 December 2021
SOVEREIGN METALS LIMITED
NEWS RELEASE I 22 DECEMBER 2021
PLACEMENT TO UK INVESTORS
Sovereign Metals Limited (Sovereign or the Company) (ASX:SVM,
AIM:SVML) is pleased to announce that it has successfully completed
a bookbuild and secured commitments for gross proceeds of GBP1
million (A$1.9 million) from UK investors following its recent
listing on the AIM market of the London Stock Exchange
(Placement).
The Placement will enhance the Company's shareholder base on the
AIM market with the net proceeds to be used for further exploration
activities in 2022 at Sovereign's globally significant Kasiya
Rutile Project (Kasiya or the Project).
The recently announced results of Kasiya's initial Scoping Study
demonstrate the potential for a multi-decade mine providing a
stable, low carbon footprint supply of highly sought-after rutile
and graphite. Results include a post-tax NPV(8) of US$861m and IRR
of 36% with average annual EBITDA over 25 year life-of-mine of
US$161m for a capital cost of US$332m.
Several significant milestones targeted for first half of 2022
include potential significant growth in the Project's mineral
resource estimate, revised life cycle assessment to quantify
environmental benefits of Kasiya, and an updated scoping study.
The Company's broker, Optiva Securities, acted as lead manager
and bookrunner to the Placement.
ENQUIRIES
Dr Julian Stephens (Perth) Sam Cordin (Perth) Sapan Ghai (London)
Managing Director +61(8) 9322 6322 +44 207 478 3900
+61(8) 9322 6322
Nominated Adviser on AIM
RFC Ambrian
Bhavesh Patel / Andrew Thomson +44 20 3440 6800
Broker
Optiva Securities +44 20 3137 1902
Daniel Ingrams
Mariela Jaho
Christian Dennis
Share Issue, Settlement and Dealings
The Company will issue 3,571,428 Ordinary Shares of no par value
at a price of GBP0.28 per Ordinary Share (Placing Shares) at
completion of the Placement. Additionally, the Company will issue
178,571 unlisted options (based on a fee of 5% on gross funds
raised) with an exercise price of GBP0.28 expiring 3 years from
issue date to Optiva Securities on completion of the Placement.
Optiva Securities are also entitled to a 5% Placement commission on
the gross funds raised by the Company.
Application will be made for the Placing Shares to be admitted
to trading on AIM (Admission) and it is expected that Admission
will become effective in the new year on or around 12 January 2022.
The Placing Shares will rank pari passu with the Company's existing
issued Ordinary Shares.
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules (DTRs), following Admission of the
Placing Shares, Sovereign will have 427,348,755 Ordinary Shares in
issue with voting rights attached. The figure of 427,348,755 may be
used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in the
Company, under the ASX Listing Rules or the DTRs.
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended (MAR). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
Not for release in the United States
This announcement has been prepared for publication in Australia
and may not be released 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 of the US
Securities Act and applicable US state securities laws.
Forward Looking Statement
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.
Competent Person's Statement
The information in this announcement that relates to Production
Targets, Processing, Infrastructure and Capital and Operating
Costs, is extracted from the announcement dated 16 December 2021
entitled 'Kasiya Scoping Study Confirms Globally Significant
Natural Rutile Project' (Announcement). Sovereign confirms that: a)
it is not aware of any new information or data that materially
affects the information included in the announcement; b) all
material assumptions and technical parameters underpinning the
Production Target, and related forecast financial information
derived from the Production Target included in the Announcement
continue to apply and have not materially changed; and c) the form
and context in which the relevant Competent Persons' findings are
presented in this presentation have not been materially modified
from the Announcement.
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END
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