Sovereign Metals on Wednesday said its cash position remained strong amid increased investor interest.
In its quarterly update for the period ended September 30, the Malawi focused mining exploration and development company said its cash declined 18% to A$41 million - about $26.92 million - from A$50 million the prior quarter.
As with the previous quarter, Sovereign reported no debt.
The firm said its cash position was bolstered by the additional A$19 million invested by Rio Tinto PLC over the period, with the multinational mining firm now possessing 20% of its shares.
Shares in the firm are up 6.3% at 37.20 pence on Monday afternoon in London
The firm noted it would be using the proceeds from Rio’s ‘strategic investment’ to continue advancing its ‘Tier 1 Kasiya Rutile-Graphite Project’ in Malawi. This includes progressing a pre-feasibility optimisation study for Kasiya on ‘the development of a world-class mine capable of supplying critical minerals to the titanium pigment, titanium metal and lithium-ion battery industries’.
Sovereign aims to become ‘the world’s largest, lowest cost and lowest-emissions producer of two critical minerals - titanium and graphite.’
Earlier this month the firm stated that its infill drilling program to upgrade its Kasiya Resource was complete, with results anticipated for early 2025.
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