Sovereign Metals Limited (Company or Sovereign) (ASX:SVM & AIM:SVML) is pleased to provide its quarterly report for the period ended 30 June 2023.
HIGHLIGHTS
Rio Tinto invests $40.4m to become a 15% Strategic Investor
· Subsequent to the end of the quarter, Rio Tinto made an investment of A$40.4 million in Sovereign resulting in an initial 15% shareholding plus options to increase their position to potentially 19.99% within 12 months
· Investment proceeds will be used to advance the Kasiya Rutile-Graphite Project (Kasiya) in Malawi
· Rio Tinto’s investment represents a significant step towards unlocking a major new supply of low-CO2-footprint natural rutile and flake graphite
· Under the Investment Agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects of Kasiya including with respect to Sovereign’s graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market
Government of Malawi publicly applauds Rio Tinto’s Investment
· The Government applauded the timely investment by Rio Tinto and marked it as a milestone towards realising the country’s aspirations of growing the mining sector as a priority industry
· The Government’s public statement confirms its commitment to ensuring the growth of the mining sector through deliberate initiatives aiming at establishing a conducive investment environment in the sector
Kasiya Rutile-Graphite Project PFS targeting completion this Quarter
· Sovereign is in the advanced stages of the Pre-Feasibility Study (PFS) for Kasiya, a potential industry-leading major source of critical raw materials from Malawi
· Kasiya aims to be one of the world’s largest and lowest cost producers of natural rutile and natural graphitewith a carbon-footprint substantially lower than other current and planned producers
Downstream Testwork on Kasiya’s Graphite shows Excellent Suitability for us in Lithium-Ion Batteries
· Downstream testwork on Kasiya’s graphite co-product demonstrated it to have superior qualities showing excellent suitability for use in lithium-ion batteries. Key outcomes include:
o Near perfect crystallinity – an indicator of battery anode performance
o Above benchmark >99.95% carbon purity achieved
o No critical impurities or deleterious elements commonly found in other natural graphite sources
Bulk Sample Operations Commenced
· Bulk sample program commenced to produce larger volumes of rutile and graphite from Kasiya. Samples to be used for downstream testwork and product qualification for the lithium-ion battery sector
link to the full results and financial statements here
ENQUIRIES
|
Dylan Browne +61(8) 9322 6322 |
|
Nominated Adviser on AIM and Joint Broker |
|
|
SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
|
Ewan Leggat Charlie Bouverat Harry Davies-Ball |
|
|
|
|
|
Joint Brokers |
|
|
Berenberg |
+44 20 3207 7800 |
|
Matthew Armitt |
|
|
Jennifer Lee |
|
|
|
|
|
Optiva Securities |
+44 20 3137 1902 |
|
Daniel Ingram |
|
|
Mariela Jaho |
|
|
Christian Dennis |
|
|
|
|
|
Tavistock PR |
+44 20 7920 3150 |