Malawi government previously signed mining development agreements with other large-scale mining projects (Lotus, Mango) that included a 5% gross revenue royalty, 10% free carried equity stake, and a 30% corporate tax rate; Sovereign expects similar terms, with a potential for lower carried equity but accepting 10% as a precedent.

Only 30% of Sovereign's known mineral resource is planned for the initial 25-year mine life, with mineralization extending to the south and north; this design allows for optionality to extend mine life beyond 25 years, potentially to 100+ years, or high-grade deeper zones for increased graphite production if commodity markets shift.

Sovereign has completed a dry mining trial moving 300,000 tons through 22m benches with no bench collapses, demonstrating that the soft friable saprolite is stable and free-dig, validating the low mining cost assumptions in the PFS.

Sovereign aims to complete a definitive feasibility study by Q3-Q4 2025 and expects to reach a final investment decision by early 2026, on a timeline dependent on successful completion of current pilot mining, deposition, tailings, and rehabilitation work, and permitting progress with Malawi government.

Sovereign has invested heavily in government relationships at multiple levels, holds bi-weekly meetings with an interministerial government committee, and presents progress every six weeks; this relationship-building has created government support for the project and expedited permitting, which Frank attributes to meeting with 15,000+ people during the environmental scoping phase.

Sovereign will need approximately 1,100 employees at full operation and aims to recruit primarily from Malawi; while the country lacks a deep mining heritage (uranium mine closed in 2014), skilled Malawians have worked in mines across Southern Africa and are seeking to return home, making recruitment feasible with training investment.

Sovereign is exploring conservation farming partnerships with the Padium Group (funded by US AID and Irish Aid) to train approximately 6,000-7,000 smallholder farmers in improved agricultural methods, with demonstrated yields of maize increasing 350% over baseline subsistence farming, creating a secondary economic development benefit and social license for the mining operation.

Rio Tinto initially took 15% of Sovereign in July 2023, exercised its option to increase to 17.7% in July 2024, and has subsequently taken additional shares to reach 19.9% ownership, signaling strategic commitment; the investment agreement includes an option for Rio to become the operator post-DFS, suggesting Rio may eventually consolidate full control.