Evolution edges closer to $4.9 million BTR investment

Graphite project developer Evolution Energy Minerals (ASX:EV1) has reassured investors that its planned investment agreement with China-based battery anode specialist BTR New Material Group is set to proceed without a hitch. 

Evolution says its Chairman and Managing Director spent the first week of January 2024 at BTR’s headquarters in China to present additional information to help facilitate the investment decision. 

With BTR’s internal approval process nearing completion and Evolution saying it has not been notified of any due diligence issues, the company expects to land final approval for the investment before the end of the month. 

Evolution says it was originally anticipated that the conditions precedent to the BTR investment would be satisfied before the company’s upcoming shareholder meeting on 8 January. However, given the investment has not yet been finalised, Evolution’s board has opted to remove a resolution to be voted upon by shareholders regarding the investment from the upcoming meeting agenda.

The company says the removal of this resolution will not affect the validity of the proxy form sent to shareholders in respect of the deal. 

Evolution and BTR struck the investment agreement, offtake agreement, and ‘transformational’ memorandum of understanding (MoU) for downstream collaboration back in August 2023. 

As part of the deal, BTR, which Evolution touts as the world’s ‘number one global battery anode company’, has agreed to subscribe for $4.9 million worth of Evolution shares at $0.22 apiece. This would give the Chinese investor a 9.9% interest in Evolution.

The agreements ensure that roughly 90% of Evolution’s graphite is under offtake, and they provide the opportunity for financial support from BTR to Evolution. 

BTR New Material Group is based in Guangdong and specialises in lithium-ion battery materials and carbon nanomaterials. 

Evolution is working to supply sustainably sourced graphite products and battery materials to customers around the world through its ‘unique’ Chilalo graphite source in Tanzania and alongside ‘industry-leading’ tech partners

Write to Joshua Smith at Mining.com.au

Images: Evolution Energy Minerals
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Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.