REG - Sovereign Metals Ltd - Project Vault Participant Traxys Signs Offtake MOU

Sovereign MetalsAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260217:nRSQ2549Ta&default-theme=true

RNS Number : 2549T  Sovereign Metals Limited  17 February 2026

 

NEWS RELEASE I 17 FEBRUARY 2026

PROJECT VAULT PARTICIPANT TRAXYS SIGNS OFFTAKE MOU FOR KASIYA GRAPHITE

 HIGHLIGHTS

 ·    Non-binding Memorandum of Understanding (MOU) signed with Traxys
 North America for the marketing of graphite from Sovereign's Kasiya Project

 ·    Traxys is one of only three trading houses appointed to procure
 critical minerals for the US Government's US$12 billion Project Vault - the
 newly launched US Strategic Critical Minerals Reserve

 ·    Graphite is designated a US Critical Mineral by the US Geological
 Survey and is among the 60 minerals targeted under the stockpiling initiative

 ·    MOU targets 40,000 tonnes per annum of graphite concentrate for Stage
 1 (Years 1-5) and up to 80,000 tonnes per annum thereafter

 ·    Initial focus to be on high-value flake graphite for the refractory
 market, with potential to include flake graphite to serve battery anode supply
 chains

 

Sovereign Metals Limited (ASX: SVM | AIM: SVML |  OTCQX:SVMLF) (Sovereign or
the Company) is pleased to announce the execution of a non-binding Memorandum
of Understanding (MOU) with Traxys North America LLC (Traxys), a leading
global physical commodity trader and merchant, for the marketing and sale of
graphite products from the Kasiya Rutile-Graphite Project (Kasiya) in Malawi.

Upon signing the MOU, Managing Director Frank Eagar commented: "We are pleased
with the appointment of Traxys as a potential graphite marketing partner.
Traxys is not only one of the world's foremost physical commodity traders with
annual turnover exceeding US$10 billion, but has just this month been selected
as one of only three trading houses to procure critical minerals for the US
Government's landmark US$12 billion Project Vault - the newly established US
Strategic Critical Minerals Reserve.

Graphite is designated as a US Critical Mineral and is squarely in the
crosshairs of US policy to reduce dependence on Chinese-dominated supply
chains. Traxys's direct involvement in Project Vault, combined with its
extensive network of industrial customers globally, positions Kasiya's
potential graphite production to serve both strategic government procurement
programmes and established commercial markets.

This MOU demonstrates growing confidence from major global commodity players
in Kasiya's ability to potentially deliver critical minerals at scale from a
globally strategic, genuine Tier 1 project.

Figure 1: Sovereign, Traxys and US Department of State Meeting during Mining
Indaba 2026

(Left to Right: Sovereign's Chief Commercial Officer Sapan Ghai, Managing
Director Frank Eagar, Traxys CEO Mark Kristoff and US Department of State
Senior Advisor Christopher Kulukundis)

TRAXYS - US Critical Minerals Procurement Partner for Project Vault

Traxys is a leading physical commodity trader and merchant headquartered in
Luxembourg, with over 400 employees across more than 20 offices worldwide and
annual turnover in excess of US$10 billion. The group trades over 65
commodities and provides comprehensive logistics, marketing, distribution, and
supply chain management services to a broad base of industrial customers
globally.

On 2 February 2026, the US Administration launched Project Vault, a
first-of-its-kind US$12 billion public-private partnership to establish a US
Strategic Critical Minerals Reserve. Backed by a US$10 billion loan from the
US Export-Import Bank and approximately US$2 billion in private capital,
Project Vault is designed to stockpile critical minerals to protect American
manufacturers from supply disruptions and reduce dependence on
Chinese-controlled supply chains.

Traxys North America was selected as one of only three commodity trading
houses to procure critical minerals for the US Strategic Reserve.

Commenting on the appointment, Traxys CEO Mark Kristoff stated: "Traxys is
proud to be a critical minerals supplier for Project Vault. This
groundbreaking initiative…bolsters the supply chain of critical minerals for
American manufacturers and enhances national economic security."

STRATEGIC CONTEXT OF KASIYA'S GRAPHITE FOR SUPPLY CHAIN RESILIENCE

The global graphite market is dominated by Chinese production and processing.
Graphite is included on the US Geological Survey's 2025 Final List of Critical
Minerals, which comprises 60 minerals deemed essential for US national
security, economic stability, and supply chain resilience. The list also
includes Titanium and various rare earth elements such as Dysprosium, Terbium
and Yttrium.  The launch of Project Vault represents the most significant US
Government intervention in critical minerals markets in decades.

Comparing the initiative to the US Strategic Petroleum Reserve, President
Trump stated: "We're launching what will be known as Project Vault to ensure
that American businesses and workers are never harmed by any shortage."

The initiative has attracted participation from major US manufacturers,
including General Motors, Boeing, and Alphabet's Google.

Traxys's appointment as a procurement partner for Project Vault, combined with
its potential role as Sovereign's graphite marketing agent, provides a
potential commercial link between Kasiya's graphite production and the US
strategic minerals procurement programme.

KEY TERMS OF THE MOU

Under the MOU, the Parties have agreed to negotiate in good faith towards a
binding Marketing Agreement under which Traxys would sell Sovereign's graphite
production on the Company's behalf. The indicative key terms are as follows:

 Product            Graphite concentrate, with initial focus on refractory graphite market (flake
                    sizes of +100 mesh or larger), with potential to also serve battery anode
                    customers
 Indicative Volume  Approximately 40,000 tonnes per annum in Stage 1 (Years 1-5), increasing to up
                    to 80,000 tonnes per annum as the project expands
 Term               MOU contemplates a supply agreement to cover 5-10 years of production from
                    Kasiya
 Pricing            Pricing to be agreed. For marketing and selling Sovereign's graphite
                    production on its behalf, Traxys shall receive an indicative commission of 6%
                    (six percent). Delivery shall be on an FOB Mozambique port basis, CIF
                    discharge port, or any other agreed port of loading, as mutually agreed
                    between the parties.

The MOU is non-exclusive and non-binding (other than confidentiality,
compliance, reputation, governing law and anti-bribery provisions which are
binding).

The negotiation and entry into any the binding Marketing Agreement remains
subject to the respective boards' approvals and the rights of Rio Tinto Mining
and Exploration Limited under its Investment Agreement with Sovereign.

 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  MSCTRMBTMTMBMTF



            Copyright 2019 Regulatory News Service, all rights reserved