WA kaolin and silica sand exploration company, Suvo Strategic Minerals Limited (ASX: SUV) has commenced trading on the Australian Securities Exchange following a heavily oversubscribed capital raising of $5 million.
Executive Chairman, Robert Martin, said that based on the capital raising price, Suvo has a market capitalisation of $10.5 million, with the company receiving applications from investors well in excess of the maximum raise amount of $5 million.
We would like to welcome all new Suvo shareholders and express our thanks for the exceptional support we have received during the listing process,” Mr Martin said.
“We believe the company has two potential world class near-term producing assets that enjoy commodities that are in high demand. Our near term objective is to rapidly progress the development of these assets to create value for all our new and existing shareholders.”
The company owns the White Knight Kaolin project, a potentially world class high- grade kaolin deposit located in the wheat belt of Western Australia which encompasses a maiden JORC Inferred Resource of 35.1mt of bright white kaolinised granite.
Metallurgical testing has recorded exceptional average ISO brightness of >80% and yield of 40% with highlights of drill hole MAC01 producing ISO brightness of 89.2%, Fe203 of 0.26%, Ti02 of 0.36% and a yield of 62%.
Further resource identification exploration will be conducted over Suvo’s 3,555 hectares of granted tenure with the aim of increasing the resource size. To date only 5% of the granted tenure has been drilled. As a result of the quality and potential of the White Knight Kaolin project, the Company has made application for a further 552sq Kms adjoining and in the immediate vicinity of the current granted tenure.
In February this year, the company visited the Asia-Pacific region which facilitated introductions that have culminated in Suvo opening dialogue with potential offtake partners in the region.
The company also owns the Nova Silica Sands project, potentially a very large-scale silica sands deposit located in the Gin Gin Scarp near the township of Eneabba that has excellent logistics solutions with rail connections from site direct to the port of Geraldton.
Preliminary test work confirms raw feed stock grades are similar to market peers. The deposit has large-scale potential with low capital intensity and low environmental impact mining propositions.
A resource identification drilling program will be conducted in the third quarter of calendar 2020 and the company aims to have a maiden JORC resource in the fourth quarter of calendar 2020. Metallurgical test work will be carried out simultaneously to help identify end user markets, potential pricing points and provide critical data for feasibility studies.
