Sovereign Metals Limited announced that it expects to receive AUD 3 million in funding from Aterra Capital and other investor.

Sovereign Metals Limited (ASX:SVM) announced a private placement of 10,000,000 common shares at AUD 0.30 per share for gross proceeds of AUD 3,000,000 on January 14, 2013. The transaction will see participation from new investor Aterra Capital for 8,330,000 common shares for gross proceeds of AUD 2,499,000. Aterra Capital will subscribe through its affiliates and will hold 10.54% stake in the company.

The company expects the transaction to complete on or about January 18, 2013.