NEWS RELEASE
I 26 JUNE
2024
SOVEREIGN PARTNERS WITH
INTERNATIONAL DEVELOPMENT ORGANISATION IN MALAWI
· Sovereign has entered into an MoU with The Palladium Group - a
US-based international development entity operating in
Malawi.
· Palladium implements several development projects, including
the Feed the Future Malawi Growth Poles Project, which invests in
local rural communities to advance sustainable, climate-smart, and
inclusive wealth creation.
· Sovereign and Palladium will collaborate around Sovereign's
Kasiya Project to provide key agricultural inputs, training,
technologies, and financing to develop and integrate smallholder
farmers into the emerging high growth agriculture value
chains.
· A
central pillar of the MoU and partnership is Sovereign's existing
Conservation Farming Program, which aims to promote tried and
tested improved small-scale agricultural practices, and the
creation of community support and mentorship networks.
Sovereign Metals Limited (ASX: SVM;
AIM: SVML) (Sovereign) has
signed a Memorandum of Understanding (MoU) with The Palladium Group
(Palladium) - a US-based
development entity implementing several development projects in
Malawi including the Feed the Future Malawi Growth Poles Project
(Growth Poles). Growth
Poles is a US$50 million project that will run from 2023 to
2028.
Palladium is a global impact firm
that works to link social progress and commercial growth. For
nearly six decades, Palladium has been working with
corporations, governments, investors, communities,
and civil society to formulate strategies, build partnerships,
mobilise capital, and implement programs that have a lasting social
and financial impact. With a workforce of
over 2,500 global leaders, Palladium has positively impacted the
lives and livelihoods of more than 76 million people across 90
countries; broadening access to health, water, power, and
infrastructure; building enduring, sustainable, and transformative
institutions and market systems to address global challenges; and
conserving the natural world.
Sovereign has launched several
social development initiatives focused on improved health
(provision of clean water), education (scholarships and school
support), and conservation farming practices in communities located
near and within Sovereign's Kasiya Rutile-Graphite Project
(Kasiya or Project) area.
The MoU identifies Sovereign as a
potential anchor firm in Malawi and Kasiya as an anchor client or
"Partner Growth Pole". The MoU sets out a long-term vision for
multi-partner investment and co-development aimed at supporting
community engagement activities and scaling up the availability of
commercial agriculture across Malawi, in particular in
environmentally and economically vulnerable groups and households,
to improve livelihoods for communities around the Kasiya
Project.
A central pillar of the MoU and
partnership is Sovereign's existing Conservation Farming Program
(refer to Company ASX announcements dated 26 February 2024 and 15
April 2024), which aims to promote tried and tested improved
small-scale agricultural practices, and the creation of community
support and mentorship networks. The Conservation Farming Program's
objective is to substantially improve crop yields of the farming
communities within and around the Project area, thus improving food
security and economic growth.
Sovereign and Palladium are already
collaborating to provide Purdue Improved Crop Storage (PICS) bags to beneficiaries of
Sovereign's Conservation Farming Program. PICS are non-chemical,
hermetically sealable bags that reduce post-harvest losses by
20-30% caused by poor storage of grains.
The MoU also establishes the
foundation for the potential long-term development of partnerships
with multiple private sector firms and development agencies, with
the aim of catalysing diverse and inclusive development across a
wide area, through mechanisms such as input financing, extension
support, offtake arrangements, and complementary investments in
value chain infrastructure. The MoU expires on 18 April 2028 and
can be extended by mutual agreement.
Sovereign and Palladium Staff
Standing Together with Sovereign's Conservation Farming
Beneficiaries
Sovereign's Kasiya project is one of
only 11 Tier 1[i] mineral deposits discovered in
the last decade. It is the world's largest Rutile resource and
second largest flake Graphite resource, and has the potential to be
the world's largest, lowest cost, and lowest carbon producer of
both minerals.
Sovereign recognises that the Kasiya
Project presents an opportunity to assist Malawi in realising its
stated Sustainable Development Goals and can directly benefit local
communities. The positive impact of the Kasiya project will be
further enabled through the development of partnerships with the
Government of Malawi, international development organizations, and
the private sector.
ENQUIRIES
Frank Eagar (South
Africa/Malawi)
Managing Director
+61(8) 9322 6322
|
Sam Cordin (Perth)
Business Development
+61(8) 9322 6322
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Sapan Ghai (London)
CCO
+44 207 478 3900
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Nominated Adviser on AIM and
Joint Broker
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SP Angel Corporate Finance
LLP
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+44 20 3470 0470
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Ewan Leggat
Charlie Bouverat
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Joint
Brokers
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Stifel
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+44 20 7710 7600
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Varun Talwar
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Ashton Clanfield
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Berenberg
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+44 20 3207 7800
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Matthew Armitt
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Jennifer Lee
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Buchanan
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+ 44 20 7466 5000
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Forward Looking Statement
This release may include forward-looking statements, which may
be identified by words such as "expects", "anticipates",
"believes", "projects", "plans", and similar expressions. These
forward-looking statements are based on Sovereign's expectations
and beliefs concerning future events. Forward looking statements
are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could
cause actual results to differ materially from such statements.
There can be no assurance that forward-looking statements will
prove to be correct. Sovereign makes no undertaking to subsequently
update or revise the forward-looking statements made in this
release, to reflect the circumstances or events after the date of
that release.