Evolution Energy Minerals (ASX: EV1, FSE: P77) has provided an update on its efforts to secure funding for the development of its Chilalo Graphite Project in Tanzania.
The company has received non-binding expressions of interest from European, African, and Tanzanian banks, as well as from multilateral institutions, investment funds, private equity groups, and strategic investors.
An Independent Technical Engineer and Independent Environmental and Social Consultant have been appointed by potential financiers, with a site visit held this week.
The company’s fine flake product, which is earmarked for downstream processing into coated spherical purified graphite, remains intentionally uncontracted to offtake agreements providing strategic leverage for funding negotiations.
Evolution’s recently updated Definitive Feasibility Study for Chilalo estimated a post-tax NPV8 of USD 338 million and IRR of 32%, with average graphite concentrate production of 52ktpa over a 17-year mine life.
Phil Hoskins, Evolution’s Managing Director, expressed satisfaction with the progress made so far, saying, “We have achieved a number of important milestones recently with the publication of the Updated DFS and the execution of key agreements with the Tanzanian Government, both of which are key requirements of potential financiers.”
The Chilalo Graphite Project is located in south-east Tanzania and has been shown to be the world’s highest-grade graphite deposit, with a JORC-compliant resource of 26.9Mt at 10.3% TGC.