Having received firm commitments to raise $3.4 million in a share placement, Evion Group NL (ASX:EVG) intends to leverage the new capital to expand the Maniry Graphite Project and capitalise on accelerating graphite demand forecast for the electric vehicle (EV) industry over the next decade or so.
The company has received strong support for its plans to create a vertically integrated graphite business with Maniry at its centre, which will allow the company to carve out a market in the rapidly expanding electric vehicle and battery anode material (BAM) markets.
Final element for construction to begin
"Evion's emergence as a near-term producer of graphite is being recognised and we look forward to rewarding all shareholders with a number of major company milestones as 2023 unfolds,” Evion Group managing director Tom Revy said.
"The fund raising will enable us to complete the final elements of our plans to commence construction at our flagship graphite project in Madagascar and undertake pre-construction engineering works.
"Following our scoping study confirming the viability of our proposed BAM Plant in Germany, we also plan to complete an advanced pre-feasibility study with leading BAM technology company, Urbix Inc, USA. This study reflects the strong collaboration between our two companies.
"Additionally, our expandable graphite project in India is advancing very well with commissioning expected later this year.
“Evion Management will again be on site in India over the next few months to assist with the fast-tracking of development.
“The board of Evion believes the company is in an exciting stage of its growth with its plans for developing a large graphite mine and having downstream processing plants well advanced.
“The outlook for graphite, in concentrate and battery anode material form, is now quite widely considered to be very strong.”
Use of placement funds
Evion will hold a cash balance of some $5 million once the placement has been completed, which will be used as follows:
- Completion of the Environmental and Social Impact Assessment (ESIA) for the Maniry Graphite Project in Madagascar.
- Finalise statutory licensing and permitting in respect of the Maniry Project.
- Pre-feasibility costs in relation to the downstream Battery Anode Material Plant in Europe in conjunction with Urbix Inc.
- Further resource development and growth of the Maniry Project.
- Pre-construction engineering works in respect of the Maniry Project.
- General working capital.