REG - Sovereign Metals Ltd - Sovereign Signs Rutile Offtake MoU with Mitsui

Sovereign MetalsAnnouncement

Today 07:30

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260312:nRSL3872Wa&default-theme=true

RNS Number : 3872W  Sovereign Metals Limited  12 March 2026

 

NEWS RELEASE I 12 MARCH 2026

SOVEREIGN SIGNS RUTILE OFFTAKE MOU WITH MITSUI AS GLOBAL CRITICAL MINERALS
POLICY ACCELERATES

Non-binding MOU signed with Mitsui & Co. to supply rutile mainly to the
Japanese titanium industry

KEY HIGHLIGHTS

·    Offtake framework for up to 70,000 tonnes per year of Kasiya natural
rutile concentrate (TiO₂ >95%) over an initial four-year supply period
from first production, with potential five-year extension

·    Japan is the dominant supplier of titanium metal to the United States
underscoring the strategic importance of securing reliable natural rutile
feedstock

·    MOU signed following inaugural US Critical Minerals Ministerial and
the US, EU, and Japan announcing cooperation on critical minerals supply chain
resilience, including border-adjusted price floors and a new preferential
trade framework

·    Japan's State Minister for Foreign Affairs delivered keynote remarks
at the Ministerial alongside Vice President Vance and Secretary Rubio, citing
Japan's "deep sense of concern and urgency" over critical mineral supply chain
disruptions - natural rutile is a key feedstock for Japan's titanium industry

Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the
Company) is pleased to announce that it has signed a non-binding Memorandum of
Understanding (MOU) with Mitsui & Co., Ltd (Mitsui) for the sale and
purchase of natural rutile from Sovereign's Kasiya Rutile-Graphite Project
(Kasiya or the Project) in Malawi.

Upon signing the MOU, Managing Director and CEO Frank Eagar commented:

"We are pleased to have signed this MOU with Mitsui. Mitsui brings deep
expertise in commodity trading, resource investment, and logistics - areas
that are directly relevant to the development of Kasiya. Following China,
Japan is the world's second-largest producer of titanium metal and a critical
hub for high-value titanium manufacturing. Mitsui's interest in securing a
reliable natural rutile supply from Kasiya - the world's largest natural
rutile deposit - is a strong endorsement of the Project's strategic value and
the quality of its product.

This MOU comes at a time when critical minerals supply chain security has
never been more prominent on the global agenda, as highlighted by last month's
inaugural US Critical Minerals Ministerial and the announced cooperation
between the US, EU, and Japan on critical minerals trade policy."

Mitsui is a global trading and investment company with a presence in more than
60 countries and a diverse business portfolio covering a wide range of
industries. The company identifies, develops, and grows its businesses in
partnership with a global network of trusted partners including world leading
companies, combining its geographic and cross-industry strengths to create
long-term sustainable value for its stakeholders. Mitsui is engaged in
resource development, manufacturing, sales, and trading of steel and
non-ferrous metal raw materials, making it a natural and strategic
counterparty for Kasiya's natural rutile.

The MOU records the mutual intention of the parties to negotiate in good faith
towards a formal sales and offtake agreement (the Definitive Agreement) for
natural rutile from the Kasiya Project. The MOU is non-exclusive and
non-binding except for certain standard clauses relating to confidentiality,
publicity, and governing law.

JAPAN - THE GLOBAL HIGH PERFORMANCE TITANIUM POWERHOUSE

After China, Japan is the world's second-largest producer of titanium sponge -
the primary metal form of titanium - and is recognised globally for producing
the highest-quality titanium alloys for use in aerospace, defence, medical,
and advanced manufacturing applications.

Japan is home to some of the world's leading titanium metal manufacturers,
including Toho Titanium Co., Ltd. (Toho Titanium) and OSAKA Titanium
technologies Co., Ltd., both of which are significant consumers of high-grade
rutile feedstock and account for over 60% of aerospace and defence-grade
titanium metal production outside of China and Russia. Natural rutile - the
purest, highest-grade form of naturally occurring titanium feedstock - is a
preferred input for Japanese titanium producers given its superior TiO₂
content and lower impurity profile. In June 2025, Sovereign announced that
Toho Titanium confirmed the suitability of Sovereign's rutile product for
producing high-specification titanium products.

The United States is the world's largest importer of titanium metal and
sourced over 70% of its titanium sponge imports from Japan during the first
half of 2025, underscoring Japan's critical role in Western titanium supply
chains. This dynamic highlights the strategic importance of securing reliable,
high-quality rutile feedstock for the Japanese titanium industry and its
downstream customers in aerospace, advanced technologies, and defence.

US, EU AND JAPAN ADVANCE CRITICAL MINERAL SUPPLY CHAIN RESILIENCE

The signing of this MOU coincides with a landmark month for global critical
minerals policy. On 4 February 2026, US Secretary of State Marco Rubio hosted
the inaugural US Critical Minerals Ministerial in Washington, D.C., bringing
together delegations from over 50 nations, including Japan, to advance
collective efforts to strengthen and diversify critical minerals supply
chains. The US Government has mobilised more than US$30 billion in support for
critical mineral supply chain projects over the past six months.

Japan's State Minister for Foreign Affairs Iwao Horii delivered keynote
remarks alongside Vice President Vance and Secretary Rubio, emphasising
Japan's "deep sense of concern and urgency about the risk of disruptions to
critical mineral supply chains."

Separately, US Trade Representative Ambassador Jamieson Greer announced that
the United States, European Union, and Japan intend to develop Action Plans
for critical minerals supply chain resilience, including coordinated trade
policies and border-adjusted price floors to mitigate supply chain
vulnerabilities. Ambassador Greer described the cooperation as laying "the
groundwork for a binding plurilateral agreement on trade in critical minerals
with like-minded partners."

Natural rutile - the highest-grade naturally occurring titanium feedstock -
sits at the foundation of these supply chains. The convergence of this MOU
with Mitsui and the accelerating global policy momentum around critical
mineral supply chain security further validates Sovereign's strategic
positioning as a potential cornerstone of diversified, Western-aligned
titanium feedstock supply.

KEY TERMS OF THE MOU

Rutile Product Offtake

The parties will negotiate a Definitive Agreement for the sale and purchase of
natural rutile concentrate on the following indicative basis.

 Product                   Natural rutile concentrate (TiO₂ >95%) with suitable particle size
                           distribution and impurity profile
 Indicative Volume         Up to 70,000 tonnes per year
 Initial Supply Period     Four (4) years from commencement of production (planned for 2030), concurrent
                           with Stage 1 of the Project (12Mtpa plant throughput)
 Additional Supply Period  Potential extension for five (5) additional years upon mutual agreement,
                           concurrent with Stage 2 (24Mtpa plant throughput)
 Pricing                   To be agreed, referencing market prices for equivalent specification natural
                           rutile concentrate at the time of shipping. Pricing likely on FOB or CIF basis
 Status                    Non-binding and indicative; all terms subject to negotiation and finalisation
                           in the Definitive Agreement

Existing Agreements

The MOU with Mitsui is subject to and acknowledges the Company's existing
agreements, including:

·    Investment Agreement with Rio Tinto Mining and Exploration Limited
(dated 16 July 2023)

·    Collaboration Agreement with the International Finance Corporation
(dated 15 December 2025)

The negotiation and entry into any Definitive Agreement with Mitsui remains
subject to the rights of Rio Tinto pursuant to the Investment Agreement.

The MOU is effective for a period of two (2) years.

 Enquiries
 Frank Eagar, Managing Director & CEO

 South Africa / Malawi

 +27 21 140 3190

 Sapan Ghai, CCO

 London

 +44 207 478 3900

 

                                                

 Nominated Adviser on AIM and Joint Broker
 SP Angel Corporate Finance LLP                +44 20 3470 0470
 Ewan Leggat

 Charlie Bouverat
                                                
 Joint Broker                                   
 Stifel                                        +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 

 

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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGRGDXSDBDGLD



            Copyright 2019 Regulatory News Service, all rights reserved