Evolution Energy Minerals Ltd (ASX:EV1) has engaged a strategic and financial advisor to secure additional financing support for the development of the Chilalo Graphite Project in southeast Tanzania.
For this purpose, Treadstone Resource Partners has been appointed to coordinate and broaden the company’s ongoing strategic investor process.
As Evolution focuses on progressing Chilalo through to a Decision to Mine, the debt financing process is advancing.
Investor discussions
Reports from independent technical engineers Palaris Limited and independent environmental and social consultant Prime Resources Pty Ltd, were completed in the first quarter of 2024.
These technical reports, along with due diligence conducted by banks, bolsters confidence in the company’s prospects of securing debt finance.
The company is engaged in discussions with potential strategic investors at varying stages of due diligence and Treadstone’s appointment is expected to broaden and coordinate this process.
“Increased interest”
Evolution’s chief executive officer Phil Hoskins said: “Following recent changes in the global graphite and anode supply chain, along with the validation provided by BTR’s investment and offtake arrangements, the company has seen increased inbound interest from strategic investors.
“I am pleased with the level of graphite market understanding demonstrated by these interested parties, acknowledging that coarse flake graphite, such as that which will be produced at Chilalo, is essential for the economic viability of graphite mines.
“There is a significant amount of technical and project information available for potential investors to review, and I am confident that the strategic process will generate significant investment interest.”
The primary objective is to attract strategic funding that supports the intended debt financing for the development of the Chilalo project.
Evolution is open to considering a range of strategic alternatives should they deliver the best outcome for shareholders.
Board transition
The company has also initiated changes in order to increase the independence of the Board of Directors.
As part of this transition, the company’s managing director Phil Hoskins will retire from the board and assume the role of chief executive officer to focus on the development of Chilalo.
As part of its investment agreement with Evolution, ARCH Sustainable Resources Fund LP has the right to nominate a director to the board and has nominated Robin Birchall as a non-executive director, replacing Cameron Dowling as its nominee.
“It is a sign of the maturing of the company that we are refreshing the board to ensure it has the appropriate skills and expertise to the next development phase of the Chilalo Graphite Project," Evolution’s non-executive chairman Mike Spreadborough said.
“I would like to personally thank Phil for his decision to relinquish his board role to focus on the development of Chilalo. I would also like to thank Cameron for his contribution as we welcome Robin to the board.”