Evolution Energy Minerals Ltd (ASX:EV1) has settled a vital agreement covering the ownership, development and management of the company’s Chilalo Graphite Project with the Tanzanian Government’s Special Presidential Government Negotiating Team, reviewed by the Attorney General.
The ‘Framework agreement and shareholder agreements’ confirm the Tanzanian Government’s 16% non-diluted free carried interest shareholding and commitment to jointly develop Chilalo.
Under the agreements, a new joint venture (JV) company, Kudu Graphite Limited, has been established to hold Chilalo’s licences and permits and for the purpose of developing Chilalo.
The JV has been incorporated and will be owned 84% by Evolution (indirectly through its wholly-owned UK subsidiary) and 16% by the Tanzanian Government.
Vital step in securing financing
“Settling these agreements with the Tanzanian Government is a critical step forward in the development of our Chilalo Project,” Evolution Energy Minerals managing director Phil Hoskins said.
“Financiers require certainty around the operation of the Tanzanian Government’s free carried interest and the completion of these agreements provides that certainty.
“Together with the updated DFS (definitive feasibility study), which is expected to be released in the coming weeks, we believe Evolution is well placed to advance the development of Chilalo.
“We have worked closely with the Tanzanian Government for an extended period of time and recognise that aligning with the Government and with the people of Tanzania is fundamental to unlocking the value of our Chilalo Project.
“We now look forward to partnering with the Tanzanian Government as we strive to establish a commercial scale graphite mine in south-east Tanzania for the benefit of all stakeholders.”
A public signing ceremony before the President of Tanzania, Her Excellency Samia Suluhu Hassan, is expected to be held in March 2023.