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- Suvo Strategic Minerals (SUV) announces a share purchase plan (SPP) and placement to raise funds for expansion of its Pittong Plant
- The company received firm commitments to raise $7.5 million through a placement, which will see it issue 88.24 million new shares at a price of 8.5 cents each
- The new shares come with attaching options at 15 cents each for every three new shares subscribed for, expiring at the end of June 2023
- The company plans to raise $2 million through an SPP, which will be offered at the same terms as the placement
- Shares are trading 8.16 per cent lower today at 9 cents each
Kaolin producer and silica sand exploration company Suvo Strategic Minerals (SUV) has announced a share purchase plan (SPP) and placement to raise funds for the expansion of its Pittong Plant.
The company received firm commitments to raise $7.5 million through a placement, which will see it issue 88.24 million new shares at a price of 8.5 cents each.
This represents an 11 per cent discount to the 15-day volume-weighted average price.
SUV will issue attaching options at 15 cents each for every three new shares subscribed for, expiring at the end of June 2023.
The company is also planning to undertake an SPP to raise an additional $2 million, which will be offered at the same terms as the placement.
The funds will be used towards the $5 million upgrade of the Pittong hydrous kaolin plant and for project studies associated with the company’s Western Australian kaolin and silica sand assets.
The plant upgrade is expected to increase processing capacity from 25 kilo-tonnes per annum to 60 kilo-tonnes per annum by 2023.
It will be achieved by materially enhancing processing capacity and improving energy efficiencies, utilising the recently acquired fully automated press deck equipment.
The company said the expansion of capacity will not impact current operations.
Shares were trading 8.16 per cent lower today at 9 cents each at 2:20 pm AEDT.
