Rio Tinto to invest AUS$40.4 million and become a 15% strategic investor in Sovereign
Published by Isabelle Keltie,
Editorial Assistant
Global Mining Review,
Monday, 17 July 2023 14:00
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- Rio Tinto to make an investment of AUS$40.4 million in Sovereign resulting in an initial 15% shareholding.
- Investment proceeds will be used to advance the Kasiya Rutile-Graphite Project in Malawi.
- Rio Tinto’s investment represents a significant step towards unlocking a major new supply of low-CO2-footprint natural rutile and flake graphite.
- Under the Investment Agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects of Kasiya including with respect to Sovereign’s graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market.
- Issue of 83 095 592 new Shares of Sovereign to Rio Tinto at a price of AUS$0.486 per share represents a 10% premium to the 45-day volume weighted average price on the ASX as at close 14th July 2023.
- Rio Tinto also issued with 34 549 598 options to increase its shareholding by an additional 4.99% to potentially 19.99% of Sovereign within 12 months.
- Rio Tinto’s 34.5 million options have an exercise price of AUS$0.535 per Share, representing a 21% premium to the 45-day volume weighted average price on the ASX as at close 14th July 2023, for additional proceeds of up to AUS $18.5 million (if all options are exercised).
Sovereign’s Chairman Ben Stoikovich commented: “This landmark agreement with Rio Tinto, one of the world’s largest and most accomplished global mining companies, is confirmation of Kasiya’s place as one of the most significant critical mineral discoveries in recent times. The experience and expertise that Rio Tinto brings will truly set Kasiya apart as a potentially globally significant supply of two critical minerals and take us all a step closer to supply chain decarbonisation and achieving net-zero. Furthermore, this is yet another step towards unlocking significant benefits from development of the Kasiya project for Malawi. We welcome Rio Tinto as a major shareholder of Sovereign and look forward to working with Rio Tinto as our strategic partner in the development of Kasiya.”
Read the article online at: https://www.globalminingreview.com/finance-business/17072023/rio-tinto-to-invest-aus404-million-and-become-a-15-strategic-investor-in-sovereign/
