REG - Sovereign Metals Ltd - Appointment of Stifel as Joint Broker

Sovereign MetalsAnnouncement

19/03/2024 07:00

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RNS Number : 3414H  Sovereign Metals Limited  19 March 2024

NEWS RELEASE I 19 MARCH 2024

APPOINTMENT OF STIFEL AS JOINT BROKER

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is
pleased to announce the appointment of Stifel Nicolaus Europe Limited, a
subsidiary of Stifel Financial Corp (Stifel), as joint broker to the Company
with immediate effect. Stifel will work alongside Sovereign's incumbent
brokers, Joh. Berenberg, Gossler & Co KG, and SP Angel Corporate Finance
LLP.

Stifel is a full-service investment bank, offering securities brokerage,
trading, research, underwriting and corporate advisory services.

Stifel has more than 600 investment banking professionals which allows them to
deliver the full capabilities of Stifel's institutional capital markets
platform, which are among the most highly regarded in the industry across all
major markets in North America and Europe.

In 2023, Stifel was named US Mid-Market Equity House of the Year by
International Financing Review (IFR).

 

ENQUIRIES

 Frank Eagar (South Africa/Malawi)  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
 Stifel                                     +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Berenberg                                  +44 20 3207 7800
 Matthew Armitt
 Jennifer Lee

 Buchanan                                   + 44 20 7466 5000

ABOUT SOVEREIGN

Sovereign is focused on the development of its Kasiya project in Malawi.
Kasiya is the largest natural rutile deposit and the second-largest flake
graphite deposit in the world. Sovereign aims to develop a low-CO(2) and
sustainable operation to supply highly sought-after natural rutile and
graphite to global markets.

In July 2023, Rio Tinto invested A$40.4 million in Sovereign resulting in an
initial 15% shareholding. Under the Investment Agreement, Rio Tinto will
provide assistance and advice on technical and marketing aspects of Kasiya.

Results of the PFS released in late 2023, demonstrated Kasiya's potential to
become the world's largest rutile producer at 222kt per annum and one of the
world's largest natural graphite producers outside of China at 244kt per annum
based on an initial 25 year life-of-mine.

Delivering compelling economics with a post-tax NPV(8) of US$1.6 Billion and
post-tax IRR of 28%, this long-life, multi-generational operation was modelled
to initially generate over US$16 Billion of revenue and provide an average
annual EBITDA of US$415 Million per annum.

Kasiya's PFS modelling was limited to only 25 years meaning substantial
production rate and mine life upside exists, with an initial Probable Ore
Reserves declared of 538Mt, only representing 30% of the total Mineral
Resource.

Competent Person Statement

The information in this announcement that relates to the Mineral Resource
Estimate is extracted from an announcement dated 5 April 2023 entitled 'Kasiya
Indicated Resource Increased by over 80%' which is available to view at
www.sovereignmetals.com.au (http://www.sovereignmetals.com.au) and is based
on, and fairly represents information compiled by Mr Richard Stockwell, a
Competent Person, who is a fellow of the Australian Institute of Geoscientists
(AIG). Mr Stockwell is a principal of Placer Consulting Pty Ltd, an
independent consulting company. Sovereign confirms that a) it is not aware of
any new information or data that materially affects the information included
in the original announcement; b) all material assumptions included in the
original announcement continue to apply and have not materially changed; and
c) the form and context in which the relevant Competent Persons' findings are
presented in this announcement have not been materially changed from the
original announcement.

The information in this announcement that relates to Production Targets, Ore
Reserves, Processing, Infrastructure and Capital Operating Costs, Metallurgy
(rutile and graphite) is extracted from an announcement dated 28 September
2023 entitled 'Kasiya Pre-Feasibility Study Results' which is available to
view at www.sovereignmetals.com.au (http://www.sovereignmetals.com.au) .
Sovereign confirms that: a) it is not aware of any new information or data
that materially affects the information included in the original announcement;
b) all material assumptions and technical parameters underpinning the
Production Target, and related forecast financial information derived from the
Production Target included in the original announcement continue to apply and
have not materially changed; and c) the form and context in which the relevant
Competent Persons' findings are presented in this presentation have not been
materially modified from the Announcement.

 Ore Reserve for the Kasiya Deposit
 Classification  Tonnes     Rutile Grade  Contained Rutile      Graphite Grade (TGC) (%)  Contained Graphite  RutEq. Grade*

(Mt)
(%)
(Mt)
(Mt)
 (%)
 Proved          -          -             -                     -                         -                   -
 Probable         538       1.03%         5.5                   1.66%                     8.9                 2.00%
 Total            538       1.03%         5.5                   1.66%                     8.9                 2.00%

* RutEq. Formula: Rutile Grade x Recovery (100%) x Rutile Price (US$1,484/t) +
Graphite Grade x Recovery (67.5%) x Graphite Price (US$1,290/t) / Rutile Price
(US$1,484/t). All assumptions are taken from this Study ** Any minor summation
inconsistencies are due to rounding.

 Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile
 cut-off grade
 Classification    Resource     Rutile Grade     Contained Rutile    Graphite Grade (TGC) (%)    Contained Graphite
                   (Mt)         (%)              (Mt)                                            (Mt)
 Indicated          1,200       1.0%             12.2                1.5%                        18.0
 Inferred           609         0.9%             5.7                 1.1%                        6.5
 Total              1,809       1.0%             17.9                1.4%                        24.4

 

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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