Evolution Energy launches $4.6 million share placement

Graphite specialist Evolution Energy Minerals (ASX:EV1) has tapped private investors for $4.6 million to progress its potential partnership with multi-billion-dollar lithium-ion battery anode producer BTR New Material Group. 

Evolution, which has a $33.41 million market capitalisation, is offering investors 32.9 million EV1 shares at $0.14 a pop — a 15.2% discount to the company’s last trading price and an 18.3% discount to its 5-day volume-weighted average price. 

Under the placement, Evolution plans to issue the new shares in 2 tranches: 24.74 million under tranche one to raise $3.46 million, and 8.12 million under tranche 2 to raise the remaining $1.14 million, subject to shareholder approval.

Alongside the progression of Evolution’s proposed investment from BTR, the fresh funds are earmarked for optimisation work and the progression of project financing at the Chilalo Graphite Project in Tanzania, as well as the progression of a US downstream battery anode collaboration with BTR. 

Evolution Managing Director Phil Hoskins says it’s an ‘exciting’ time for the company as it works to deliver its strategy of becoming a vertically integrated producer of anode materials using fine-flake graphite from Chilalo. 

“Subject to the completion of the transactions with BTR New Material Group Co Ltd, Evolution will have the opportunity to partner with the world’s largest producer of lithium-ion battery anodes, thereby providing a pathway to vertical integration. 

Proceeds from the placement will enable the completion of key workstreams required for project development to commence and will advance the debt financing process and evaluation work (being undertaken together with BTR) on downstream processing in North America.” 

Proceeds from the placement will enable the completion of key workstreams required for project development to commence…”

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

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

BTR New Material Group is based in Guangdong, China, 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 and alongside ‘industry-leading’ tech partners. 

Write to Joshua Smith at Mining.com.au

Images: Evolution Energy Minerals & Pexels
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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.