REG - Sovereign Metals Ltd - World Bank Group's IFC to Collaborate with SVM

Sovereign MetalsAnnouncement

16/12/2025 07:00

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RNS Number : 6865L  Sovereign Metals Limited  16 December 2025

NEWS RELEASE I 16 DECEMBER 2025

WORLD BANK GROUP'S IFC TO COLLABORATE WITH SOVEREIGN ON SUSTAINABLE
DEVELOPMENT FOR KASIYA

·    Collaboration Agreement signed with International Finance Corporation
(IFC), a member of the World Bank Group, to support the sustainable
development of Kasiya.

·    Collaboration with IFC - world's largest global development
institution - is expected to lay the foundation for international project
financing for Kasiya, the world's largest rutile and second largest graphite
deposit.

·    IFC to provide Environmental & Social expertise, supplementing
Rio Tinto's significant input. The Kasiya Definitive Feasibility Study (DFS)
and Environmental and Social Impact Assessment (ESIA) will seek to integrate
IFC's Performance Standards on Environmental and Social Sustainability.
(https://www.ifc.org/en/insights-reports/2012/ifc-performance-standards)

·    IFC secures financing rights to fund Kasiya: right to act as lender,
mandated co-lead arranger, and/or investor in securities for project
financing. IFC's financing rights are subject to Rio Tinto's rights under the
Investment Agreement.

·    IFC is a key investor and development partner for mining projects in
emerging markets.

·    The World Bank Group has a long-standing presence in Malawi,
supporting strategic enabling infrastructure, including transport
infrastructure and power, which is expected to benefit Kasiya.

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the
Company) is delighted to announce that it has signed a strategic Collaboration
Agreement (Agreement) with International Finance Corporation (IFC) to advance
the sustainable development of the Company's Kasiya Rutile-Graphite Project
(Kasiya or the Project) in Malawi. IFC is a member of the World Bank Group
(World Bank) and the largest global development institution focused on the
private sector in developing countries.

In fiscal year 2025, IFC committed a record US$71.7 billion to private
companies and financial institutions in developing countries, with a total
portfolio of US$68.5 billion as of 30 June 2025, demonstrating its commitment
to financing major projects worldwide.

Under the Agreement:

·   IFC will use its expertise to support aligning Kasiya with IFC's
environmental, social, and governance standards. IFC will complement
Sovereign's owner's team and supplement Rio Tinto's input for the development
of the Environmental and Social Impact Assessment (ESIA) aligned with global
best practice sustainability standards.

·    IFC will have rights to finance Kasiya following the collaboration in
accordance with the Agreement and subject to the Rio Tinto's rights under the
Investment Agreement. IFC may act as:

o Primary lender and/or mandated co-lead arranger for debt financing of the
Project;

o Lead investor in debt or equity securities financing; and

o The term of the Agreement is 36 months (refer below for further details).

IFC's track record demonstrates its commitment to partnering with leading
miners, including Sovereign's strategic investor, Rio Tinto, on tier-one
projects.

Sovereign's Chairman Ben Stoikovich: "IFC brings unmatched advantages to
Kasiya's development - decades of experience in Malawi, including in strategic
infrastructure we intend to utilise, established government partnerships, and
the institutional credibility that opens doors to international capital
markets. This collaboration provides Sovereign with a clear pathway to
financing while supporting Kasiya to meet the global standards that
institutional investors require."

Sovereign's CEO Frank Eagar commented: "We are incredibly pleased to get IFC
involved at this stage, as this will support our DFS and ESIA efforts to be
aligned with IFC's Environmental and Social Performance Standards, seeking to
make the Kasiya Project DFS not just feasible but also bankable. Having IFC's
support validates Kasiya's exceptional quality and strategic importance and
takes us one step closer to project execution. The World Bank Group's support
for key enabling infrastructure, including the Nacala transport corridor and
the Mpatamanga Hydropower Project, are expected to benefit the Kasiya
project."

IFC'S EXTENSIVE TRACK RECORD WITH WORLD-CLASS MINING ASSETS

IFC (www.ifc.org (http://www.ifc.org) ) has decades of experience in the
metals and mining sector, financing some of the world's largest and globally
strategic mining projects across all stages, including construction,
production, and expansion. As both a long-term equity partner and debt
provider to major mining companies, including Sovereign's strategic investor,
Rio Tinto, IFC has supported large-scale mine developments and expansions
across multiple continents.

WORLD BANK'S STRATEGIC PRESENCE IN MALAWI

The World Bank Group has a significant presence in Malawi through a Country
Partnership Framework that supports the government's Malawi 2063 Vision. Its
activities include financing major enabling infrastructure like the Mpatamanga
Hydropower Project, which is Malawi's largest energy infrastructure project to
date. IFC also previously played a role in mobilizing financing for the Nacala
transport corridor, which extends through Malawi. The Kasiya Project is
expected to directly benefit from these strategic infrastructure assets.

COLLABORATION AGREEMENT PARTICULARS

Collaboration Activities

IFC and the Company shall collaborate on the Kasiya Project via the following
activities:

·    environmental and social review and identification of improvement
opportunities, if any;

·    meetings with local communities, stakeholders and the Government of
Malawi;

·    development of an implementation plan to support the Project's
alignment with IFC Performance Standards required for a potential IFC funding
proposal; and

·    support Sovereign until the completion of the ESIA.

IFC Financing Rights

If the Board of Directors of Sovereign resolve to seek funding to finance the
construction of Kasiya to achieve first production, the IFC is granted the
right to:

·      act as lender and/or mandated co-lead arranger in relation to all
or a part of any financing of the Project by means of senior, subordinate,
mezzanine or any other type of loans and/or the mobilisation from or
syndication to third-party lenders of loans to finance the Project; and/or

·      act as a subscriber or purchaser in respect of all or a part of
any financing of the Project by means of the issuance or sale of senior,
subordinate, mezzanine or any other type of debt or equity securities, subject
to this right to any Securities Financing not resulting in the IFC exceeding
19.9% of voting power in Sovereign.

If, during the term of the Agreement, Sovereign receives an offer from a third
party to fund the construction of Kasiya, IFC has the right to match those
terms. The financing rights granted to IFC are subject to the prior rights of
Rio Tinto pursuant to the Rio Tinto Investment Agreement.

The term of the Agreement ends on the earlier of the date a financing
agreement is entered into with IFC or 3 years from the date of the Agreement.

Either party may terminate the Agreement at any time prior to the end of the
term by giving the other party 30 calendar days prior written notice or
immediately if there is an event of default. In the case of Sovereign
terminating the Agreement or in the case of IFC terminating for Sovereign
being in default of the Agreement, Sovereign would be required to pay IFC an
amount of up to US$160,000.

 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.

 

The information contained within this announcement is deemed by Sovereign to
constitute inside information as stipulated under the Regulation 2014/596/EU
which is part of domestic law pursuant to the Market Abuse (Amendment) (EU
Exit) Regulations (SI 2019/310) ("UK MAR"). By the publication of this
announcement via a Regulatory Information Service, this inside information (as
defined in UK MAR) is now considered to be in the public domain.

 

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