Evolution Energy Minerals Ltd (ASX:EV1) has received commitments to raise A$4 million to support the continued progress of its development-ready, high-margin, low-capex Chilalo Graphite Project in Tanzania.
The funds were raised via a two-tranche placement of 100 million fully paid ordinary shares to institutional, sophisticated and professional investors at $0.04 per share.
This raise was supported by major EV1 shareholder, ARCH Sustainable Resources Fund LP, which invested around $1.3 million, which will give it a 25% shareholding, post-raise, and upon shareholder approval.
The company also welcomes German fund Deutsche Balaton AG as a substantial shareholder, holding some 6.3%.
Directors participate
EV1 directors have also committed to subscribe for 2.5 million shares for proceeds of A$100,000, subject to shareholder approval.
“We are very pleased to receive commitments for a $4 million placement, which will help progress Evolution through the assessment of various financing alternatives for Chilalo,” said Evolution non-executive chairman Mike Spreadborough.
Evolution will immediately issue approximately 43.2 million new shares under its existing placement capacity, with a further 56.8 million new shares subject to shareholder approval. A Notice of Meeting will be released shortly and is expected to occur in late-July 2024.
The A$0.04 per share issue price represents a 2.4% discount to the last closing price of A$0.041 on June 7, 2024, and a 15.6% discount to the 10-day volume weighted average price.
Joint lead managers to the placement are Shaw and Partners and Bridge Street Capital Partners.