PERTH (miningweekly.com) – Graphite spin-out Evolution Energy Minerals has started share trading on the ASX following a A$22-million initial public offering (IPO).
ASX-listed Marvel Gold in May this year unveiled plans to spin out and separately list its Chilalo graphite project, in Tanzania, into the Evolution Energy Minerals vehicle.
Evolution has now started share trading on the ASX under the ticker code EV1, with a market capitalisation of A$32-million, applying the IPO price of 20c a share.
“We are extremely pleased with the response from institutional and retail investors in our IPO, which was significantly oversubscribed. Chilalo is a well-advanced graphite asset and having successfully completed the IPO, Evolution is strongly positioned to advance Chilalo towards development,” said executive chairperson Trevor Benson.
“A comprehensive work programme is now under way, firmly focused on achieving this objective.”
A 2020 definitive feasibility study into the project based on an annual throughput of 500 000 t/y to produce around 50 000 t/y of graphite, found that the project would require a preproduction capital investment of $87.4-million.
The study estimated a post-tax net present value of $331-million and a post-tax internal rate of return of 36%, with Chilalo anticipated to generate average annual earnings before interest, taxes, depreciation and amortisation of $74-million over its 18-year mine life.