Sovereign is going it aloneToday 03:39
• Rio Tinto has notified Sovereign that it will not exercise its right to elect to become operator of Sovereign’s
Kasiya Rutile-Graphite Project under the Investment Agreement
• Rio Tinto has advised the Company, in its formal notice, that its decision reflects its change in corporate
strategy regarding its Titanium business
• Accordingly, certain rights that Rio Tinto had in the Investment Agreement have now lapsed, including:
o exclusive marketing rights to market 40% of the annual production of all products
o pre-emptive right over any offer from a third party to acquire an interest in the Project
• Rio’s decision does not reflect any change in the fundamentals, economics or strategic importance of
Kasiya as highlighted in the Kasiya DFS, which was completed with technical input from Rio Tinto
• Since the completion of the DFS, Sovereign has had deepening engagement with the U.S. Government,
major U.S. companies, and industry stakeholders
• Sovereign can now prioritise a U.S.-focused critical-minerals strategy, positioning Kasiya as a secure, nonChinese source of titanium feedstock and natural graphite for the U.S. and allied supply chains
• Commercial workstreams will include:
o advancing rutile and graphite offtake discussions toward binding agreements with Mitsui, Traxys and
other strategic U.S. and U.S.-allied counterparties
o continued engagement with potential offtake partners and U.S. government stakeholders in relation
to the heavy rare earth co-product opportunity
• Kasiya provides exposure to three minerals designated critical by the U.S. – titanium (via natural rutile),
graphite and heavy rare earths (via a Heavy Rare Earth Concentrate by-product) – each feeding U.S. and
allied supply chains, including Japan, being the dominant supplier of titanium metal to the U.S.
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