mesab

Sovereign Metals (ASX:SVM)(AIM:SVML) - US-Aligned Strategy Reshapes $750M Kasiya F... youtu.be/jv8vNSvdf5w?si=A3dZ… via @YouTube @sovereignmetals @CruxInvestor Excellent interview with Sapan Ghai, Chief Commercial Officer. My precis below, Developing the Kasiya project in Malawi to supply three critical minerals to the USA and its allies. It will become the largest and lowest cost producer of Rutile It will become the largest and lowest cost producer of graphite. (cheaper than China) And one of the lowest cost producers of a heavy rare earth concentrate. Approached by US state department 9 months ago with regards to how to supply their rutile and graphite into the USA. Sapan Ghai is in the USA two weeks in four. Discussions are about off takes and master supply agreements. The rutile will probably go to Japan. This is where the highest grade titanium is processed for the west. Toto titanium, who have the most stringent requirements, has stated that Kasiya rutile can be used for any and all end purposes. (Toto supply the defence and aerospace industries in the USA) The graphite will likely be marketed via Traxis who were tasked by the USA to secure critical mineral supply as part of Project Vault. The rare earths; off take and western refiner discussions in process. The discussions are around how the USA government can help them build the mine. Post the RIO funded and ‘run’ DFS which were taken to World Bank standards, it’s all about how to fund the mine build. RIO has declined the project purely because they had a change in CEO and they are exiting all their titanium assets. Technically, the project passed with flying colours. A bunch of ex RIO people have moved in house with Sovereign post their involvement with the DFS Project finance. $750m. $450m debt from development finance institutions. IFC , DFC ,AFC who provide cheaper debt than the banks. Pre-payment and off-take financing to do the bulk of the $300m balance. Equity will be the last piece of the financing. Debt and off-take financing will be completed in H1 next year. Strategic partner (post RIO ) potential is also in play. Sounds like some NDAs have been signed. Multiple parties asking as to how they can get involved. They all loved the product when they tested bulk samples back in the day but got out muscled by RIO. New strategic is definitely part of the mix Rare earths…..returns on capital are remarkable. For an extra $30m capex, it will produce $80m of profits per annum for 25 years. Next 12 months? “Lots of discussions with Debt Funding Institutions and people with balance sheets in the US. There is a lot happening behind the scenes that I cannot talk about. Expect a resolution on the financing package in the next 6 to 9 months.’