Evion Group (ASX:EVG) has secured mining permits for its Maniry Graphite Project in Madagascar, marking a major regulatory milestone as the Australian company moves the project closer to development.
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The permits convert Evion’s remaining exploration licences into mining tenure, securing all key project areas covered by the project’s feasibility study. The company said the approval provides the regulatory certainty needed to progress financing, offtake discussions and work towards a Final Investment Decision.
Managing director David Round described the approval as “a transformational milestone for both the project and the company” in an update today.
The ASX-listed company said its focus will now shift to securing offtake agreements, progressing project financing and preparing for construction. Evion is already in discussions with potential funding partners, including the European Investment Bank. The company has also secured EU-backed grant funding of up to €3 million to support early-stage development and workforce training.
According to the CY22 Definitive Feasibility Study, Maniry has an initial mine life of 21 years, including an 18-year Ore Reserve. Stage one production is expected to deliver ~39,000 tonnes of graphite concentrate annually, increasing to ~56K tonnes a year from year four, with capacity to reach up to 60K tonnes annually.
The DFS estimated a pre-tax net present value of US$263M and an after-tax net present value of US$204.8M. The study also outlined an after-tax internal rate of return of 32.65%, with capital payback expected in 3.8 years.
Evion said the mining permits also support continued engagement with local communities and government stakeholders while allowing the company to begin local procurement planning as development progresses.
The mining permits have been granted and registered with Madagascar’s Bureau du Cadastre Minier de Madagascar, with the company noting the approvals remain subject to ongoing compliance with the country’s mining regulations.
EVG is up 11.54% so far today, trading at $0.29/sh.
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