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 (TiO2) 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)
Managing Director
+27 21 065 1890
|
Sam Cordin (Perth)
Business Development
+61(8) 9322 6322
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Sapan Ghai (London)
CCO
+44 207 478 3900
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Nominated Adviser on AIM and
Joint Broker
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SP Angel Corporate Finance
LLP
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+44 20 3470 0470
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Ewan Leggat
Charlie Bouverat
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Joint
Brokers
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Stifel
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+44 20 7710 7600
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Varun Talwar
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Ashton Clanfield
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Berenberg
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+44 20 3207 7800
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Matthew Armitt
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Jennifer Lee
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Buchanan
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+ 44 20 7466 5000
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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.