Sovereign reassures as Rio pulls out of Kasiya operatorship right

(Sharecast News) - Sovereign Metals said on Wednesday that Rio Tinto had decided not to exercise its right to become operator of the Kasiya rutile-graphite project in Malawi, citing a change in strategy for its titanium business. As a result, Rio's exclusive marketing rights over 40% of annual production, pre-emption rights and certain other project rights have lapsed, although it remains an 18.2% shareholder.

Sovereign said the decision did not change Kasiya's fundamentals and would allow it to prioritise a US-focused critical minerals strategy, targeting non-Chinese supply chains for titanium feedstock, natural graphite and heavy rare earths.

Chairman Ben Stoikovich thanked Rio for its "significant contribution to the advancement of Kasiya" and said Sovereign was now "well positioned to prioritise a U.S.-focused critical minerals strategy."

At 1156 BST, shares in Sovereign Metals were down 10.48% at 27.75p.

Reporting by Josh White for Sharecast.com.

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