TIDMSVML
RNS Number : 9878J
Sovereign Metals Limited
03 May 2022
This announcement is not for release to US wire services or
distribution in the United States
SOVEREIGN METALS LIMITED
NEWS RELEASE I 3 MAY 2022
INSTITUTIONAL PLACEMENT TO RAISE $15M
-- Firm commitments received for A$15 million
-- Placement cornerstoned by Thematica Future Mobility UCITS Fund,
a European green energy fund which offers exposure to companies
to benefit from the transition to clean and sustainable energy
solutions
-- Funds to be used to further the development of Sovereign's Kasiya
Project, the world's largest natural rutile deposit and one of
the world's largest flake graphite resources
Sovereign Metals Limited (Sovereign or the Company) (ASX:SVM,
AIM:SVML) is pleased to announce it has secured commitments for
A$15 million (gross proceeds) from UK, European and North American
institutional investors to subscribe for 22,210,268 new ordinary
shares of the Company at an issue price of A$0.67 plus a
one-for-two unlisted option with an exercise price of A$0.80 and 12
month expiry (Placement).
Thematica Future Mobility UCITS Fund, a Luxembourg-based green
energy fund with a strong emphasis on Critical Raw Materials and
ESG, were the cornerstone participant in the well-supported
Placement which will fund exploration and development activities at
the Company's flagship Kasiya Project (Kasiya).
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's Managing Director, Dr Julian Stephens commented :
"We are extremely pleased that prominent green energy investors
such as Thematica see 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 which is
a vital component in lithium-ion batteries used in electric
vehicles. 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."
Total Voting Rights
Sprott Capital Partners LP acted as financial advisor in
connection with the Placement. The Company's joint corporate
broker, Joh. Berenberg, Gossler & Co. KG. provided financial
advice in Europe. A fee of 6% is payable on amounts placed by the
financial advisors.
The Company will issue the shares and options under Listing Rule
7.1.
ENQUIRIES
Dr Julian Stephens (Perth) Sam Cordin (Perth) Ben Stoikovich (London) Sapan Ghai (London)
Managing Director +61(8) 9322 6322 Chairman +44 207 478 3900
+61(8) 9322 6322 +44 207 478 3900
Nominated Adviser on AIM
RFC Ambrian
Bhavesh Patel / Andrew Thomson +44 20 3440 6800
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Varun Talwar
Optiva Securities +44 20 3137 1902
Daniel Ingrams
Mariela Jaho
Christian Dennis
Share Issue, Settlement and Dealings
The Company will issue 22,210,268 Ordinary Shares of no par
value at a price of A$0.67 per Ordinary Share (Placing Shares) at
completion of the Placement. Additionally, the Company will issue
plus a one-for-two unlisted option with an exercise price of A$0.80
and 12 month expiry.
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 on or around 19 May 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 463,281,023 Ordinary Shares in
issue with voting rights attached. The figure of 463,281,023 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.
Not for release to US wire services or distribution 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.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
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END
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