from a German Mining Letter :Original Link...

from a German Mining Letter :
Original Link :

https://www.minenportal.de/artikel/508545--Sovereign-Metals~-Rio-Tinto-steigt-mit-ueber-40-Mio.-AUD-ein.html

Translate :
Sovereign Metals: Rio Tinto joins with over AUD 40 million!
A milestone today for my long-time favorite Sovereign Metals! As the company announced today in Australia, mining giant Rio Tinto will become a new strategic investor with 15% stake in the company: Link. Rio Tinto will invest A$40.40 million in Sovereign Metals in a capital increase, buying a 15% stake in the company.The new shares were issued at a 10% premium to the 45-day volume-weighted average share price (A$0.486). In addition, Rio Tinto will receive call options with a strike price at AUD 0.535 to increase the position to 19.99% in 12 months! An accolade for Sovereign and a confirmation of the outstanding quality of the company and the asset!Rio Tinto is coming in at a company level, not a project level, which also shows that the company is very clean and well run.With the right to top up to 19.99% via options within the next 12 months, you actually already know where the journey is likely to end. As soon as Rio would go above this mark, a takeover bid would have to be made.The money will be used for DFS, which is the final and definitive feasibility study for the Kasiya project and costs for the permitting process.As of now, Rio also has the right to provide a director or "overseer," as well as three people for the technical committee, so the company will be involved in the DFS process from the beginning.

Assessment and conclusion:

Rio Tinto is letting the A good A$40 million for the first entry and a further A$18.5 million may follow AUD may follow in the next 12 months. The details in the show the high level of technical and marketing interest that Rio Tinto already has. and marketing interest Rio Tinto already has, so that I clearly assume that in the end the complete takeover is the goal.The company is keeping its rights open to a financing package in the event of a production decision, and we want to work work intensively together to qualify the graphite for the battery industry (!). industry (!), Rio wants to become the operator of the project and Rio wants to be the operator of the project and have 40% of the marketing rights.When the Sovereign's team successfully moves forward with the PFS, DFS and permitting permitting process successfully, then Rio Tinto will go through with the Complete acquisition through with Premium.Rio is now utilizing Sovereign's team Sovereign's team on the ground to clear the final hurdles and, once risks are once the risks have been reduced to a minimum, it will strike.Translated with www.DeepL.com/Translator (free version)