RUTILE OFFTAKE AND MARKETING ALLIANCE WITH MAJOR JAPANESE TRADING HOUSE
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MoU signed with global trading and investment firm for rutile offtake, marketing and product development for the Kasiya Rutile Project |
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MoU covers offtake and marketing rights for 30,000 tonnes per annum of natural rutile from Kasiya |
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Marketing alliance will focus on Asia, a key and established growth market for high-grade titanium feedstocks |
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Key Asian customers have confirmed premium chemical parameters of Kasiya’s natural rutile as part of product quality assessments |
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Asian titanium metal producers have confirmed the suitability of the Kasiya rutile product |
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that it has entered into a non-binding Memorandum of Understanding (MoU) with Mitsui & Co Ltd (Mitsui), one of the largest global trading and investment companies in Japan. The MoU establishes a marketing alliance and offtake for 30,000 tonnes of natural rutile per annum from the Company’s world-class Kasiya Rutile Project (Kasiya) in Malawi.
This MoU creates a marketing alliance between the two parties to jointly market Sovereign’s rutile across Asia and other markets. The alliance will allow Sovereign to leverage off Mitsui’s extensive network and their market-leading understanding of the titanium industry and global logistics.
Mitsui has shared samples of rutile product from Kasiya with Asian end-users that have confirmed its premium chemical specifications should be suitable for use in their titanium sponge and pigment processes, as a precursor for high-grade, high-specification titanium metal and pigment production.
Sovereign’s Managing Director, Dr Julian Stephens commented: “The Asia region is a key natural rutile market with all major end-use sectors well established and further strong growth forecast. We expect expanding technology developments and increasing environmental awareness to drive greater demand for natural rutile. This marketing alliance with a very high-calibre partner in Mitsui will assist Sovereign to penetrate these ever-growing markets.
The MoU is non-exclusive and non-binding with no pricing terms which remains subject to negotiation and execution of a definitive agreement. The MoU will expire on 31 December 2023 but can be extended by agreement by both parties should a definitive agreement not have been reached by that time.
ENQUIRIES
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Dr Julian Stephens (Perth) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM |
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RFC Ambrian |
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Bhavesh Patel / Andrew Thomson |
+44 20 3440 6800 |
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Joint Brokers |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Optiva Securities |
+44 20 3137 1902 |
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Daniel Ingram |
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Mariela Jaho |
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Christian Dennis |