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EV Resources (ASX:EVR) secures $25m investment to bolster growth plans

ASX News, Materials
ASX:EVR      MCAP $11.89M
07 February 2023 12:35 (AEST)

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EV Resources (EVR) has secured a $25 million investment from Sapphire Global Energy Fund via an equity placement to support the company’s growth plans.

The $25 million investment comes in the form of an equity drawdown facility, with an option to drawdown on the facility for 60 months starting on March 1, 2023, unless an earlier date is agreed on by both parties.

The company said the proceeds will go towards acquiring projects and for working capital to develop its portfolio, including drilling campaigns and funding towards JORC-compliant mineral resource estimates of the projects.

EVR Executive Director Navin Sidhu said the investment highlights the potential of the company’s growth plans.

“The investment commitment is another major milestone that will enable us to grow significantly over the next 12 months,” he said.

“Sapphire is very supportive of the company and realises the potential we have, thus they have provided us with an extremely competitive and sizeable facility.”

As per the agreement, a security of 35 million shares will be issued prior to the first drawdown which can be used to offset any drawdown.

Mr Sidhu said the flexibility of the investment will help it better “manage our funding needs, reduce dilution and not be at the mercy of the markets”.

The funding boost will also help push EVR towards becoming a strategically diversified explorer and developer of precious and green energy metals.

EVR shares were up 46.7 per cent, trading at 2.2 cents at 12:34 pm AEDT.

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