Rio Tinto Mining and Exploration has increased its shareholding in Sovereign, a company advancing a tier-1 Kasiya Rutile-Graphite Project in Malawi, to 19.76%.
The miner exercised 34,5 million share options to acquire the same number of new fully paid ordinary shares in Sovereign at A$0.535 per share for proceeds of A$18,484.
Sovereign said it will use the proceeds from Rio Tinto's additional strategic investment to continue advancing the graphite project.
This includes progressing the current optimisation study for Kasiya, which is focused on the development of a world-class mine capable of supplying critical minerals to the titanium pigment, titanium metal, and lithium-ion battery industries.
Rio Tinto will continue to provide assistance and advice on the technical and marketing aspects of Kasiya.
“Rio Tinto's further investment in Sovereign reaffirms Kasiya's position as one of the most significant critical mineral projects globally,” said Sovereign chairperson Ben Stoikovich.
“With Rio Tinto's wealth of experience as one of the world's largest and most accomplished global mining companies, Kasiya is well-positioned to potentially become a market leader in low-carbon dioxide-footprint natural rutile and graphite."
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
