TIDMSVML
RNS Number : 2060Q
Sovereign Metals Limited
16 October 2023
SOVEREIGN METALS LIMITED
NEWS RELEASE I 16 October 2023
KEY MANAGEMENT APPOINTMENTS TO DRIVE PROJECT OPTIMISATION AND
DEVELOPMENT AT KASIYA
-- Appointment of experienced African based mining executive, Mr
Frank Eagar, as the new Managing Director and CEO
-- Existing Managing Director Dr Julian Stephens to transition to Non-Executive Director
-- Key technical appointments of experienced African
engineering, social and environmental teams to work on project
optimisation and advancing the development of the Kasiya
Project
-- Management changes bring a strong track record of successful
large-scale project development in southern Africa
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or
Sovereign) is pleased to announce the appointment of Mr Frank Eagar
as Managing Director and Chief Executive Officer (CEO), effective
from 20 October 2023.
Mr Eagar has over 20 years' experience in the financing,
permitting, development and operation of mining projects with a
strong focus in southern Africa.
Mr Eagar is a Chartered Accountant who has gained extensive
corporate, commercial and technical experience in the mining sector
throughout his career. Mr Eagar has previously held a number of
senior executive positions in the resources sector, more recently
with African mining focused private equity firm AMED Funds, which
included acting as Chief Financial Officer (CFO) for AMED's
controlled company, Central Copper Resources PLC (Central
Copper).
Prior to Central Copper, Mr Eagar was the CEO (and prior to that
the CFO) of Baobab Steel Limited (Baobab) another AMED controlled
company, where he managed the completion of a Definitive
Feasibility Study (DFS) and a joint venture with the World Bank's
IFC to procure strategic investors and raise project finance for
Baobab's US$1 Billion, fully permitted, integrated 500ktpa Steel
and Vanadium Project in Mozambique.
Mr Eagar joined Sovereign in December 2022 as General Manager in
Malawi, where he has already expanded the team with a focus on
Malawian nationals, developed strong relationships with Government
and demonstrated a clear understanding of the Kasiya Project and
its development landscape.
Sovereign has also made several key technical appointments as
the Company transitions into project optimisation and development
of the Kasiya Project and is poised to become a significant
supplier of natural rutile and graphite. These key appointments
bring a strong track record of successful large-scale project
development and operations management, as well as extensive
experience in southern Africa.
These management changes come at an important time for the
Company as it transitions from the Pre-Feasibility Study (PFS) into
the next phase of project optimisation, community and stakeholder
engagements and ultimately the completion of a DFS.
Effective from 20 October 2023 current Managing Director, Dr
Julian Stephens, will transition to a Non-Executive Director of
Sovereign, remaining as a consultant assisting and supporting the
incoming technical and management team.
Dr Stephens has been Managing Director of Sovereign since June
2016 and has been instrumental in the Company's growth and
development. He first identified rutile mineralisation in Malawi
and then led the team that discovered Sovereign's world-class
Kasiya rutile-graphite deposit.
The Board would like to take this opportunity to thank Dr
Stephens for his significant contribution to the Company and look
forward to his continual involvement with Sovereign as the Company
continues the development of the Kasiya Project.
Dr Julian Stephens commented: "It has been a privilege to lead
Sovereign through the discovery and early study phases and it is
now a logical time for leadership transition as the Company
continues through the next phases of development. I am extremely
proud of the significant achievements our team has accomplished
during my time. With the appointment of Frank as MD and CEO, plus
the technical team enhancements, I am confident that the Company is
in very good hands and in a strong position to establish itself as
a globally significant supplier of natural rutile and
graphite."
Incoming Managing Director, Mr Frank Eagar commented: "Securing
Rio Tinto as a strategic investor alongside the completion of the
high-quality PFS, provides the foundation for what will be an
extremely exciting time in the Company's development story. I am
very honoured and look forward to taking on my new role as MD and
CEO. The Kasiya Project is multi-generational, has the potential to
deliver a valuable, long-term source of low-CO(2) critical minerals
and generate substantial economic and socio-economic returns."
Sovereign's Chairman Ben Stoikovich commented : "Today's
management changes and appointments mark a pivotal step for the
Company as it lays the foundation for project optimisation and
development. With Rio Tinto's investment and the release of a
world-class PFS, the Company is entering an exciting new phase. I
would like to thank outgoing MD, Julian Stephens, who has done a
tremendous job in the discovery of Kasiya, a truly
once-in-generation deposit, and growing Sovereign to where it is
today. The Company is looking forward, in collaboration with Rio
Tinto, to conducting the optimisation review, progressing to the
Definitive Feasibility Study and delivering the significant
potential of Kasiya to all stakeholders."
Details of Mr Eagar's remuneration are included in Appendix
A.
ENQUIRIES
Dr Julian Stephens (Perth) Sam Cordin (Perth) Sapan Ghai (London)
Managing Director +61(8) 9322 6322 +44 207 478 3900
+61(8) 9322 6322
Nominated Adviser on AIM and
Joint Broker
SP Angel Corporate Finance LLP +44 20 3470 0470
Ewan Leggat
Charlie Bouverat
Harry Davies-Ball
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Tavistock PR +44 20 7920 3150
APPIX A - TERMS AND CONDITIONS OF APPOINTMENTS
Mr Frank Eagar
Mr Eagar will be engaged as Managing Director and Chief
Executive Officer under an employment agreement that can be
terminated with six (6) months written notice, or payment in lieu
thereof. Mr Eagar will be paid fees of US$296,000 per annum and be
entitled to a discretionary bonus of up to US$74,000 per annum upon
the achievement of relevant key performance indicators to be
determined by the Board. Mr Eagar will also be granted with the
following long-term incentives under the Company's Shareholder
approved Long-term Equity Incentive Plan:
-- 300,000 performance rights that vest upon satisfaction of the
DFS Milestone, expiring 31 October 2025;
-- 500,000 performance rights that vest upon satisfaction of a
Grant of Mining Licence Milestone, expiring 31 March 2026; and
-- 700,000 performance rights that vest upon satisfaction of a
Final Investment Decision Milestone, expiring 30 June 2026.
Mr Francis (Frank) John Eagar (aged 46) directorships in the
last five years are as follows:
Company Status
------------------------------ ---------
New Dawn Resources Limited Current
Emdan Financial (Pty) Ltd Current
Baobab Steel Limited Previous
Baobab Global Trading FZE Previous
Capitol Iron & Steel Limitada Previous
------------------------------ ---------
As at 16 October 2023, Mr Francis Eagar holds 500,000 ordinary
fully paid shares, and 700,000 unlisted performance rights subject
to DFS Milestone, expiring 31 October 2025 .
There are no other disclosures required in accordance with Rule
17 or Schedule 2(g) of the AIM Rules.
Dr Julian Stephens
Dr Stephens will step down to Non-Executive Director and will
also be engaged under a consulting agreement for technical and
transition services that can be terminated with one month's written
notice. Dr Stephens will be entitled to a receive a daily rate of
A$2,000 under the consulting agreement.
Incentive Securities
Subject to shareholder approval at the upcoming the Company's
Annual General Meeting on 24 November 2023, the Company will issue
the following performance rights to Directors (and others):
Tranche 1 - DFS Milestone Tranche 2 - Grant of Mining Tranche 3 - Final
(expiring 31 October 2025) Licence Milestone Investment Decision
(expiring 31 March 2026) Milestone
(expiring 30 June 2026)
----------------------------- --------------------------- ---------------------------- ----------------------------
Benjamin Stoikovich - 350,000 500,000
Mark Pearce - 250,000 400,000
Nigel Jones - 100,000 150,000
Other key employees and
consultants 1,150,000 2,400,000 2,950,000
----------------------------- --------------------------- ---------------------------- ----------------------------
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
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.
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END
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