Press Release: Sovereign Metals sign MoU with Nacala railway

MoU signed for Malingunde Rail and Port services – A key project milestone

Sovereign Metals Limited (“the Company” or “Sovereign”) is pleased to report that it has signed a transport logistics MoU with Central East African Railways (“CEAR”), an infrastructure and logistics consortium which Vale SA and Mitsui & Co. Ltd operate and have significant ownership.

The MoU (“Agreement”) covers the provision of rail freight, port access & port handling services (“the Services”) by CEAR to Sovereign for graphite concentrates produced from the Malingunde Project, subject to the parties entering into a binding agreement.

Sovereign has now identified a secure and efficient pathway for the transport of its graphite concentrates in partnership with two world class organisations. This is a significant milestone in advancing the development of the exceptionally low-cost, high-quality natural flake graphite project at Malingunde.

HIGHLIGHTS:

  • Provision of  the Services for up to a 20-year term and 100,000tpa  of concentrates, which provides upside to the Company’s initial 44,000tpa target.
  • CEAR to supply  and maintain all infrastructure, equipment  and personnel  required  to provide the Services.
  • CEAR is  a consortium  managed  by Vale and Mitsui, global leaders in mining and trading natural resources, and associated provision of infrastructure services.
  • The Malingunde Scoping Study logistics cost estimate of ˜US$65/t free on board (FOB) is based on indicative pricing for the Services.


Dr Julian Stephens, Sovereign
s Managing Director commented, “The signing of the Agreement with such reputable multinational partners is a very important step for Sovereign, and we are delighted to have such experienced operators assisting us in advancing the Malingunde Project. The provision of port and rail services provides a clear pathway for the reliable and efficient transport of the high quality Malingunde concentrates for sale into global graphite markets.”

Source: Sovereign Metals Limited

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