Rio Tinto to Invest USD27.5 Million in Sovereign Metals

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Rio Tinto has announced plans to invest AUD40.4 million (US$27.5 million) to acquire a 15% stake in Sovereign Metals Limited.

The investment funds will be utilized to advance the Kasiya Rutile-Graphite Project in Malawi. Rio Tinto's investment is a significant milestone in unlocking a substantial supply of low-CO2-footprint natural rutile and flake graphite. According to the Investment Agreement, Rio Tinto will offer technical and marketing guidance for Kasiya, particularly concerning Sovereign's graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market. As part of the subscription, Rio Tinto will also receive options to acquire an additional 34,549,598 shares in Sovereign within 12 months of the initial subscription. This could potentially increase Rio Tinto's shareholding in the Company up to 19.99%.

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