Evolution Energy Minerals Ltd (ASX:EV1) has ticked off a key milestone for the company’s Chilalo Graphite Project with the signing of pivotal agreements with the Tanzanian Government covering ownership, development and management of the project.
The signing ceremony for the Framework Agreement and Shareholders Agreement was held at Chamwino State House, Dodoma, yesterday, before the President of Tanzania, Her Excellency Samia Suluhu Hassan.
The agreements confirm the Tanzanian Government’s 16% non-diluted free carried interest shareholding and commitment to jointly develop Chilalo.
“Completion of the agreements is a key milestone as we continue to progress towards the development of our Chilalo Project,” Evolution’s managing director Phil Hoskins said.
“Financiers require certainty on the operation of the Tanzanian Government’s free carried interest and the completion of these agreements provides the certainty to support further investment from Evolution and debt and equity financiers,” he added.
All set to go
Under the agreements, a new joint venture (JV) company, Kudu Graphite Ltd, owned 84% by Evolution and 16% by the Tanzanian Government, has been incorporated to hold Chilalo’s licences and permits.
“Finalising the agreements has been a collaborative process that has involved extensive negotiation over many months between the Special Presidential Government Negotiating Team and Evolution’s executive group,” Hoskins said.
“We thank Her Excellency Samia Suluhu Hassan, the Government of Tanzania, Members of the Special Presidential Government Negotiating Team, the Regional Commissioner of Lindi and the District Commissioner of Ruangwa for their support.
“Alignment with the Government on the key principles underpinning the development of Chilalo is critically important. With these agreements now in place, we look forward to working together with the Government of Tanzania to establish a commercial scale graphite mine that delivers meaningful benefits to all stakeholders.”
About Chilalo
The Chilalo Project is in south-eastern Tanzania, East Africa, 100 kilometres north of the border with Mozambique.
It is development-ready, with a granted mining licence and all environmental approvals in place.
The majority of the project’s strike potential remains undrilled, which gives Evolution the opportunity to materially increase the high-grade mineral resource.
Importantly, the Chilalo project aims to be carbon-free from the first day of operations.