Sovereign Metals secures US $25M for Kasiya project development
Sovereign Metals has successfully raised A$40 million ($25.2 million) through a share placement to support the development of its Kasiya Rutile-Graphite Project in Malawi.
The placement attracted firm commitments from both new and existing shareholders, including prominent institutional investors. The company issued 47.05 million new ordinary shares at A$0.85 per share. Petra Capital acted as the sole lead manager and bookrunner for the transaction. The placement is set to settle on 1 April 2025, with the new shares expected to be issued around 2 April 2025 under ASX Listing Rule 7.1.
The funds raised will be directed towards key activities at the Kasiya site, including securing permits, advancing technical studies, and covering corporate expenses and working capital needs. This financial boost strengthens Sovereign’s ability to push forward with the project’s development and bring it closer to commercial production.
Expansion potential
Recent testing by ProGraphite and Dorfner Anzaplan in Germany highlighted the high expansion potential of Kasiya’s medium-to-coarse flake graphite. This quality makes the graphite well-suited for industrial applications such as fire retardants and gaskets, providing Sovereign with a competitive advantage in the global market. The strong test results are expected to support customer engagement and aid in securing offtake agreements.
Sovereign plans to produce a 96% graphite concentrate at an incremental cost of $241 per tonne on a free-on-board basis, as indicated in the optimised prefeasibility study. The company is also making progress on site rehabilitation. Following soil remediation in December 2024, landowners were able to access the site and plant crops during the regular planting season. Additionally, a hydraulic mining trial was initiated in August 2024 as part of an effort to refine operational efficiencies at the Kasiya project. This successful capital raise positions Sovereign Metals to advance the Kasiya project’s development and strengthen its foothold in the global graphite and rutile markets.
