Rio Tinto invests $18.5m in WA based Sovereign
Rio Tinto (ASX: RIO) has increased its shareholding in Sovereign Metals (ASX: SVM) to 19.76%, making it the company’s largest shareholder.
Via an option excise, Rio Tinto will invest $18.5m to be used to advance the Kasiya rutile-graphite project in Malawi. This includes progressing an optimisation study for a world-class mine capable of supplying critical minerals to the titanium pigment, titanium metal and lithium-ion battery industries.
Sovereign chairman Ben Stoikovich says this investment reaffirms Kasiya’s position as one of the most significant critical minerals projects globally.
“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-CO2-footprint natural rutile and graphite,” he said.
Sovereign managing director Frank Eagar says the investment is a significant step towards unlocking a major new supply of low-CO2-footprint natural rutile and flake graphite.
“In collaboration with Rio Tinto, we have made significant progress in advancing Kasiya over the course of this year, including the successful launch of the pilot phase mining in May,” he said.
Funds from the option exercise are expected to be received by July 5, 2024.
 has increased its shareholding in Sovereign Metals (ASX: SVM) to 19.76%, making it the company’s largest shareholder.){kind=link}