Sovereign Metals to fast track graphite project near Malawi’s Capital City Lilongwe

Sovereign Metals Simplified Map of Duwi Trend (see Announcement from 1 September 2015)

Sovereign Metals Simplified Map of Duwi Trend (see Announcement from 1 September 2015)

Sovereign Metals, an ASX-listed exploration company, is gearing up to fast track its 100%-owned Duwi Flake Graphite Project, 15 km from Lilongwe, Malawi.

The company has announced that it is placing up to 53.3 million ordinary shares at 7.5c each to raise $4.0 million (before costs) for the pre-feasibility study (PFS) which has just commenced.

Among other short-term objectives for Duwi, the company will

  • Demonstrate product suitability for lithium ion battery anodes via an initial spherical graphite test-work program;
  • Continue development of the Company’s expandable graphite products;
  • Advance the existing partnership with Volinco with a view to securing binding offtake and project development funding;
  • Progress additional offtake discussions with potential European, Korean, Japanese and North American customers; and
  • Undertake additional RC and diamond drilling to upgrade a portion of the resource and to provide sample for further metallurgical test-work.

Dr Julian Stephens was appointed Managing Director in June. Stephen, a member of the Australian Institute of Geoscientists with 10 years experience working in Malawi, initially identified and secured the Malawi graphite assets in 2012 and has been closely involved in Sovereign’s subsequent exploration and development.

Stephens said,

It’s an exciting time for the Company with renewed interest in high quality flake graphite projects being driven by the rapidly growing rechargeable battery market. Sovereign is well placed to take full advantage of this as we fast-track our world-class Duwi Flake Graphite Project though the PFS and development.

Sovereing completed a Scoping Study in 2015, confirming Duwi as having potential to be a world-leading and high margin flake graphite project. The company has also entered into a Strategic Offtake and Development Funding Partnership with major Chinese corporation China Volant Industry Co Ltd (Volinco). Volinco and Sovereign will work together to secure development funding and long term graphite offtake arrangements in mainland China for Lilongwe-based project.

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One response to “Sovereign Metals to fast track graphite project near Malawi’s Capital City Lilongwe

  1. Pingback: Link Roundup for Extractive Industries in Malawi: July 2016 | Mining in Malawi·

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