Sovereign Metals Limited (ASX: SVM; AIM: SVML) (Sovereign or the Company) is pleased to announce thatRio Tinto Mining and Exploration Limited (Rio Tinto) has notified the Company that it has exercised all itsshare options to increase its shareholding in Sovereign to 19.76%.Rio Tinto has exercised 34,549,598 share options to acquire the same number of new fully paid ordinaryshares (Shares) in Sovereign at A$0.535 per Share for proceeds of A$18,484,035.The Company will use the proceeds from Rio Tinto’s additional strategic investment to continue advancingSovereign’s Tier 1 Kasiya Rutile-Graphite Project (Kasiya or the Project) in Malawi. This includes progressingthe current optimisation study for Kasiya which is focused on the development of a world-class minecapable of supplying critical minerals to the titanium pigment, titanium metal and lithium-ion batteryindustries. Under the Investment Agreement between Sovereign and Rio Tinto, Rio Tinto continues toprovide assistance and advice on technical and marketing aspects of Kasiya.Funds from the option exercise are expected to be received by Friday, 5 July 2024.
SVM Price at posting:
66.0¢ Sentiment: Buy Disclosure: Held
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