- Evolution Energy Minerals (EV1) is set to raise $13 million to advance development of its Chilalo graphite project in Tanzania
- Under a two-tranche placement, 40.6 million shares will be issued to institutional, sophisticated and professional investors at 32 cents each
- Subject to shareholder approval, ARCH Sustainable Resources Fund will take up 10 million shares under tranche two to maintain its 24.7 per cent interest in EV1
- Evolution says completing the placement will see the company strongly positioned in its strategy to become a vertically integrated supplier of sustainable graphite products
- Company shares resumed trade today and are in the grey trading at 36.5 cents at 12:16 pm AEST
Evolution Energy Minerals (EV1) is set to raise $13 million to advance its Chilalo graphite project in Tanzania.
Emerging from a trading halt, Evolution revealed it received firm commitments from existing and new, domestic and international investors for a placement of 40.6 million shares at 32 cents each.
The issue price marks a 16.9 per cent discount to the last trading price of 38.5 cents on August 5.
The placement will be completed in two tranches with 24.2 million shares issued to institutional, sophisticated and professional investors in the first tranche to raise $7.7 million.
Subject to shareholder approval, the additional $5.2 million will be raised in tranche two with more than 10 million shares to ARCH Sustainable Resources Fund to maintain its 24.7 per cent interest in Evolution, 5.9 million shares will go to professional and sophisticated investors and 312,500 will be issued to directors of the company.
The funds are set towards development of the company’s Chilalo project including early works, exploration and completion of front end engineering design work.
Additionally, the fresh capital will enable the company to carry out feasibility studies on the development of downstream processing facilities, and extract 500 tonnes of ore to prepare a bulk sample for product marketing and qualification purposes.
Through this work Evolution is hoping to extend the mine life and improve project economics.
Managing Director Phil Hoskins said completing the placement will see Evolution “strongly positioned” to “aggressively” advance the company’s strategy to become a “vertically integrated supplier of sustainable graphite products”.
A shareholder meeting is scheduled for September 26 to seek approval for the second tranche of the placement.
Company shares resumed trade today and were in the grey trading at 36.5 cents at 12:16 pm AEST.