Sign up Australia
Proactive Investors - Run By Investors For Investors

Sovereign Metals Ltd chairman buys 1 million shares on market

Sovereign Metals Ltd (ASX:SVM) has had one million of its shares bought up on market by its chairman of the board, Ian Middlemas, taking his holding to 6.06 million shares.
Sovereign Metals Ltd chairman buys 1 million shares on market
Sovereign Metals Ltd chairman buys 1 million shares on market

The $127,033 worth of shares were purchased at an average price of $0.127 which is 130% higher than where shares started the year.

In 2015, Sovereign discovered the Malingunde graphite deposit located 15 kilometres from Lilongwe, the capital city of Malawi, a country in southeastern Africa.

The Malingunde deposit is particularly significant as it is hosted within weathered, soft saprolite (clay) material.

Saprolite-hosted flake graphite mining operations, similar to those in China and Madagascar, usually have significant cost and environmental advantages over hard rock mining.

The project also has access to infrastructure; being 25 kilometres from rail access, 15 kilometres from high-capacity power-lines and with plentiful fresh water.

A 5,000 metre aircore resource drilling program is due to commence imminently with the results feeding in to an initial resource estimate due for completion in Q1 2017.

Exploration thus far has shown the Malingunde deposit appears to be large and high grade, with visually coarse and jumbo flake graphite identified throughout.

Saprolite-hosted mineralisation has been identified in hand auger drilling over 3.4 kilometres of strike with cumulative across strike widths locally exceeding 200 metres and averaging about 140 metres.

Grades of mineralised saprolite average around 8% total graphitic content (TGC) with a number of coherent higher grade zones well above 10% TGC identified.

Shares have doubled year to date, currently trading at $0.12.

The company had $3.6 million in cash at the end of the September quarter and has raised an additional $1.1 million since then.



Register here to be notified of future SVM Company articles
View full SVM profile

Sovereign Metals Timeline

Related Articles

picture of uranium barrels
January 23 2017
A recent decision by Kazatomprom to curtail production from its Kazakh mines by 10% can spark a recovery
6_Traders_at_work_582e3c2af1b55.jpg
November 18 2016
The exercise of options by Pantoro’s managing director provides the company with cash funding and shows that senior management believe in the company’s future.
picture of Chinese flag and gold
February 09 2017
Wishbone has supply agreements with miners based in Peru, Ghana, Chile and Colombia.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use