REG - Sovereign Metals Ltd - Key Mgmt Appointments for Development at Kasiya

Sovereign MetalsAnnouncement

16/10/2023 07:00

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RNS Number : 2060Q  Sovereign Metals Limited  16 October 2023

SOVEREIGN METALS LIMITED

 

NEWS RELEASE I 16 October 2023

 

KEY MANAGEMENT APPOINTMENTS TO DRIVE PROJECT OPTIMISATION AND DEVELOPMENT AT
KASIYA

 

·      Appointment of experienced African based mining executive, Mr
Frank Eagar, as the new Managing Director and CEO

·      Existing Managing Director Dr Julian Stephens to transition to
Non-Executive Director

·      Key technical appointments of experienced African engineering,
social and environmental teams to work on project optimisation and advancing
the development of the Kasiya Project

·     Management changes bring a strong track record of successful
large-scale project development in southern Africa

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is
pleased to announce the appointment of Mr Frank Eagar as Managing Director and
Chief Executive Officer (CEO), effective from 20 October 2023.

Mr Eagar has over 20 years' experience in the financing, permitting,
development and operation of mining projects with a strong focus in southern
Africa.

Mr Eagar is a Chartered Accountant who has gained extensive corporate,
commercial and technical experience in the mining sector throughout his
career. Mr Eagar has previously held a number of senior executive positions in
the resources sector, more recently with African mining focused private equity
firm AMED Funds, which included acting as Chief Financial Officer (CFO) for
AMED's controlled company, Central Copper Resources PLC (Central Copper).

Prior to Central Copper, Mr Eagar was the CEO (and prior to that the CFO) of
Baobab Steel Limited (Baobab) another AMED controlled company, where he
managed the completion of a Definitive Feasibility Study (DFS) and a joint
venture with the World Bank's IFC to procure strategic investors and raise
project finance for Baobab's US$1 Billion, fully permitted, integrated 500ktpa
Steel and Vanadium Project in Mozambique.

Mr Eagar joined Sovereign in December 2022 as General Manager in Malawi, where
he has already expanded the team with a focus on Malawian nationals, developed
strong relationships with Government and demonstrated a clear understanding of
the Kasiya Project and its development landscape.

Sovereign has also made several key technical appointments as the Company
transitions into project optimisation and development of the Kasiya Project
and is poised to become a significant supplier of natural rutile and graphite.
These key appointments bring a strong track record of successful large-scale
project development and operations management, as well as extensive experience
in southern Africa.

These management changes come at an important time for the Company as it
transitions from the Pre-Feasibility Study (PFS) into the next phase of
project optimisation, community and stakeholder engagements and ultimately the
completion of a DFS.

Effective from 20 October 2023 current Managing Director, Dr Julian Stephens,
will transition to a Non-Executive Director of Sovereign, remaining as a
consultant assisting and supporting the incoming technical and management
team.

Dr Stephens has been Managing Director of Sovereign since June 2016 and has
been instrumental in the Company's growth and development. He first identified
rutile mineralisation in Malawi and then led the team that discovered
Sovereign's world-class Kasiya rutile-graphite deposit.

The Board would like to take this opportunity to thank Dr Stephens for his
significant contribution to the Company and look forward to his continual
involvement with Sovereign as the Company continues the development of the
Kasiya Project.

Dr Julian Stephens commented: "It has been a privilege to lead Sovereign
through the discovery and early study phases and it is now a logical time for
leadership transition as the Company continues through the next phases of
development. I am extremely proud of the significant achievements our team has
accomplished during my time. With the appointment of Frank as MD and CEO, plus
the technical team enhancements, I am confident that the Company is in very
good hands and in a strong position to establish itself as a globally
significant supplier of natural rutile and graphite."

Incoming Managing Director, Mr Frank Eagar commented: "Securing Rio Tinto as a
strategic investor alongside the completion of the high-quality PFS, provides
the foundation for what will be an extremely exciting time in the Company's
development story.  I am very honoured and look forward to taking on my new
role as MD and CEO. The Kasiya Project is multi-generational, has the
potential to deliver a valuable, long-term source of low-CO(2) critical
minerals and generate substantial economic and socio-economic returns."

 Sovereign's Chairman Ben Stoikovich commented: "Today's management changes
and appointments mark a pivotal step for the Company as it lays the foundation
for project optimisation and development. With Rio Tinto's investment and the
release of a world-class PFS, the Company is entering an exciting new phase. I
would like to thank outgoing MD, Julian Stephens, who has done a tremendous
job in the discovery of Kasiya, a truly once-in-generation deposit, and
growing Sovereign to where it is today.  The Company is looking forward, in
collaboration with Rio Tinto, to conducting the optimisation review,
progressing to the Definitive Feasibility Study and delivering the significant
potential of Kasiya to all stakeholders."

Details of Mr Eagar's remuneration are included in Appendix A.

 

ENQUIRIES

 Dr Julian Stephens (Perth)  Sam Cordin (Perth)  Sapan Ghai (London)

Managing Director
+61(8) 9322 6322
+44 207 478 3900

 +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

 Tavistock PR                               +44 20 7920 3150

 

APPENDIX A - TERMS AND CONDITIONS OF APPOINTMENTS

Mr Frank Eagar

Mr Eagar will be engaged as Managing Director and Chief Executive Officer
under an employment agreement that can be terminated with six (6) months
written notice, or payment in lieu thereof. Mr Eagar will be paid fees of
US$296,000 per annum and be entitled to a discretionary bonus of up to
US$74,000 per annum upon the achievement of relevant key performance
indicators to be determined by the Board. Mr Eagar will also be granted with
the following long-term incentives under the Company's Shareholder approved
Long-term Equity Incentive Plan:

·      300,000 performance rights that vest upon satisfaction of the DFS
Milestone, expiring 31 October 2025;

·     500,000 performance rights that vest upon satisfaction of a Grant
of Mining Licence Milestone, expiring 31 March 2026; and

·   700,000 performance rights that vest upon satisfaction of a Final
Investment Decision Milestone, expiring 30 June 2026.

Mr Francis (Frank) John Eagar (aged 46) directorships in the last five years
are as follows:

 

 Company                            Status
 New Dawn Resources Limited         Current
 Emdan Financial (Pty) Ltd          Current
 Baobab Steel Limited               Previous
 Baobab Global Trading FZE          Previous
 Capitol Iron & Steel Limitada      Previous

As at 16 October 2023, Mr Francis Eagar holds 500,000 ordinary fully paid
shares, and 700,000 unlisted performance rights subject to DFS Milestone,
expiring 31 October 2025.

There are no other disclosures required in accordance with Rule 17 or Schedule
2(g) of the AIM Rules.

Dr Julian Stephens

Dr Stephens will step down to Non-Executive Director and will also be engaged
under a consulting agreement for technical and transition services that can be
terminated with one month's written notice. Dr Stephens will be entitled to a
receive a daily rate of A$2,000 under the consulting agreement.

Incentive Securities

Subject to shareholder approval at the upcoming the Company's Annual General
Meeting on 24 November 2023, the Company will issue the following performance
rights to Directors (and others):

                                      Tranche 1 - DFS Milestone (expiring 31 October 2025)  Tranche 2 - Grant of Mining Licence Milestone  Tranche 3 - Final Investment Decision Milestone

(expiring 31 March 2026)
(expiring 30 June 2026)
 Benjamin Stoikovich                  -                                                     350,000                                        500,000
 Mark Pearce                          -                                                     250,000                                        400,000
 Nigel Jones                          -                                                     100,000                                        150,000
 Other key employees and consultants  1,150,000                                             2,400,000                                      2,950,000

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

Forward Looking Statement

This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
Sovereign's expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. Sovereign makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.

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