PERTH (miningweekly.com) – ASX-listed Evolution Energy Minerals will raise A$13-million in a two tranche share placement to fund work at its Chilalo graphite project, in Tanzania.
The company on Wednesday announced that it had received firm commitments for the placement of 40.62-million shares, at a price of 32c each, from institutional, sophisticated and professional investors.
More than 24.2-million shares will be placed in the first tranche under Evolution’s existing placement capacity, with the second tranche of 16.3-million shares subject to shareholder approval.
“We are delighted with the support shown by new and existing investors, in particular the introduction of a number of institutional investors to the Evolution share register,’ said Evolution MD Phil Hoskins.
“Completion of the placement sees Evolution strongly positioned to aggressively advance our strategy to become a vertically integrated supplier of sustainable graphite products. We are seeking to bring the Chilalo graphite mine into production as soon as possible and to establish downstream processing facilities to produce expandable graphite and graphite foil using Chilalo’s coarse flake graphite and battery anode materials using Chilalo’s fine flake graphite.
“We are pleased that ARCH, which currently holds a 24.7% interest in Evolution shares, has committed to participate in the placement so as to maintain its 24.7% interest, a reflection of its confidence in Evolution’s strategy and work programmes that are central to delivery of that strategy.”
Funds raised will go towards completing the front-end engineering design work and an updated definitive feasibility study for the Chilalo project, and to carry out feasibility studies on the development of downstream processing facilities.
Funds will also go towards the extraction of 500 t of Chilalo ore to prepare a bulk sample for production marketing and qualifications, and to fund exploration for mine-life extensions.