Special Situation Alert - January 26, 2025

Sovereign Metals (SVM.ASX SVML.L SVMLF SVM.F) announced that it has completed an optimised pre-feasibility study for its Kasiya rutile-graphite project, reaffirming its potential as a leading global supplier of critical minerals. The study, enhanced by technical input from Rio Tinto, projects substantial operational and financial performance; a total life of mine revenue of $16.4 billion with an operating cost of $423 per tonne and a pre-tax NPV of $2.3 billion. Annual average EBITDA is expected to be $409 million, with a capital expenditure of $665 million required to reach first production. The project anticipates producing an average of 222,000 tonnes per annum of high-grade rutile and 233,000 tonnes per annum of high-purity graphite, positioning Sovereign as a potential global leader in these minerals. The project is highlighted by its strategic importance, with both rutile and graphite designated as critical minerals by the USA, EU, and recently by NATO for defence purposes.

Helix Exploration (HEX.L) announced updated reserves and results of economic modelling at its Rudyard project and a proposed capital raising of not less than £4 million through the issue of a minimum 26,666,667 new ordinary shares at 15 pence per share. Reserves of 355 million cubic feet of helium are said to have been calculated by Aeon Petroleum Consultants on the northern dome. Net revenue of $115.2 million over a 12.5-year life of field has been calculated with a peak sustained post-tax cash flow of $15-25 million per year using a flat helium price of $500 per thousand cubic feet.

Pantheon Resources (PANR.L PTHRF P3K.F) announced a Megrez-1 upgrade after preliminary log, core and cuttings analysis, and a consequential anticipated upgrade of resource for Ahpun's Eastern Topset. Preliminary volumetrics for the Upper Schrader Bluff and Upper & Lower Prince Creek formations indicate the potential for a 15% - 50% increase in resource estimates from the pre-drill estimate of 609 million barrels. Four initial flow tests are planned of 10 days each, beginning in Q1 2025, and resources are expected to be reclassified to contingent (2C) upon successful testing. Three additional potential oil bearing zones in the Lower Sagavanirktok formation have been identified, resulting in substantial further resource upside potential in the Lower Sagavanirktok, which also will be tested if confirmed by further logs and analysis.

Amaroq Minerals (AMRQ.V AMRQ.L AMRQF 72Q.F) announced that it has secured the Johan Dahl Land licence, expanding its footprint in the South Greenland Copper Belt. The addition underscores the region's potential for significant copper-gold mineralization and enhances the company's already substantial land holdings. Amaroq’s land portfolio in South Greenland now totals 6,800 km2, with 3,147 km2 in the copper-rich South Greenland Copper Belt. The new licence includes the promising Ukaleq target, where initial explorations have uncovered high gold grades up to 12.3 grams per tonne gold and copper grades up to 5.1% copper. Geochemical analyses suggests the presence of an intermediate-to-high sulphidation epithermal system, indicating significant potential for copper, gold, and silver extraction. Planned exploration activities for 2025 include detailed geophysical surveys, advanced geochemical sampling, and regional exploration to identify more mineralized systems.

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