REG - Sovereign Metals Ltd - Commencement of Trading on OTCQX Market

Sovereign MetalsAnnouncement

08/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240708:nRSH4650Va&default-theme=true

RNS Number : 4650V  Sovereign Metals Limited  08 July 2024

 

NEWS RELEASE I 8 JULY 2024

SOVEREIGN COMMENCES TRADING ON OTCQX MARKET

·    Sovereign upgrades to the OTCQX Market, the top tier of the OTC
Markets, providing access to a broader eligible U.S. investor base

·   OTCQX quotation follows increased U.S. investor and strategic interest
in Sovereign and its Kasiya Rutile-Graphite Project in Malawi

·    Kasiya has the potential to be the world's largest, lowest-cost
producer of rutile, which is the purest form of titanium feedstock, and a
long-term secure source of graphite supply outside of China

·   U.S. Department of Energy has designated both titanium and graphite as
critical minerals due to national security concerns. China currently dominates
global supply of both minerals

·

Sovereign Metals Limited (ASX: SVM; AIM: SVML; OTCQX: SVMLF) (Sovereign or the
Company) is pleased to announce that its shares have commenced trading on the
OTCQX® Best Market (OTCQX) under the ticker symbol SVMLF.

 

The OTCQX is the highest market tier of OTC Markets on which over 12,000 U.S.
and global securities trade. Sovereign previously traded on the OTC Pink
Market and has been upgraded to the OTCQX as it meets high financial
standards, follows best-practice corporate governance and has demonstrated
compliance with applicable securities laws. Trading on OTCQX began on 5 July
2024 and will enhance the visibility and accessibility of Sovereign to U.S.
investors.

 

Sovereign is focused on becoming a market leader in supplying two critical
minerals to global markets: titanium, in the form of rutile, and graphite.
China currently dominates the supply of both critical minerals.

 

Rutile is the purest, highest-grade natural form of titanium dioxide (TiO(2))
and is the preferred feedstock in manufacturing titanium pigment and producing
titanium metal. Titanium is essential for various industries, including
aerospace, defence, pigments, medical and consumer technologies. According to
the U.S. Geological Survey, China and Russia control ~70% of the global
primary titanium supply chain. Currently, the U.S. relies entirely on foreign
sources for titanium sponge, yet based on the U.S. Commerce Department's
Bureau of Industry and Security, titanium supports 15 out of 16 critical
infrastructure sectors deemed essential by the federal government.

 

Graphite is vital for the energy transition as the largest component of
lithium-ion batteries used in electric vehicles and other energy storage
solutions. Graphite anode material can be up to 50% of the mass of a typical
lithium-ion battery. According to S&P Global, in 2023, 77% of the world's
graphite production came from China, with the U.S. importing 42% of its
graphite supply from China. In December 2023, China imposed several
restrictions on the export of Graphite concentrate. In May 2024, the US
government imposed a 25% tariff on all natural graphite imported from China
from 2026 onwards.

 

Sovereign's 100% owned Tier-One Kasiya Rutile-Graphite Project (Kasiya),
located in the southeast African country of Malawi, is both the world's
largest known rutile deposit and second-largest flake graphite deposit. Kasiya
can become a long-term secure source of natural graphite supply outside of
China.

 

Through numerous technical studies, Sovereign has already confirmed that the
Kasiya project could be the world's largest and lowest-cost producer of rutile
and graphite and is currently undertaking an optimisation study. Sovereign's
strategic investor and one of the world's largest and most accomplished global
mining companies, Rio Tinto continues to provide assistance and advice on
technical and marketing aspects of Kasiya. With sustainability a core pillar
of Sovereign's strategy, Kasiya would also have the lowest greenhouse gas
emissions of any high-grade titanium feedstock or graphite producer.

 

ENQUIRIES

 Frank Eagar (South Africa/Malawi)  Sam Cordin (Perth)     Sapan Ghai (London)

Managing Director
Business Development
CCO

 +27 21 065 1890                    +61(8) 9322 6322       +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 Brokers
 Stifel                                     +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Berenberg                                  +44 20 3207 7800
 Matthew Armitt
 Jennifer Lee

 Buchanan                                   + 44 20 7466 5000

 

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  UPDEAFXPEDSLEEA