Evolution Energy Minerals puts pen to paper on framework agreement for Chilalo Project

Sustainable graphite producer Evolution Energy Minerals (ASX:EV1) reports it has signed framework and shareholders agreements with the Government of Tanzania for the Chilalo Graphite Project.

Under the agreements announced on 8 March 2023, Evolution through its wholly owned subsidiary Evolution Energy Minerals UK will establish a joint venture (JV) company known as Kudu Graphite with the Tanzanian government to hold the Chilalo licences and permits, as well as undertaking the development of the project. 

Kudu will be 84% owned by Evolution Energy Minerals, while the remaining 16% shareholding will be a non-dilutable free-carried interest by the Tanzanian government.

Evolution reports representatives from the company attended a signing ceremony at Chamwino State House in Dodima, before the President of Tanzania, Samia Suluhu Hassan to sign the agreements.

“Financiers require certainty on the operations of the Tanzanian Government’s free carried interest and the completion of these agreements provides the certainty”

Commenting on the agreements, Evolution Energy Minerals Managing Director, Phil Hoskins says: “Completion of the agreements is a key milestone as we continue to progress towards the development of our Chilalo Project. Financiers require certainty on the operations 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.

Finalising the agreements has been a collaborative process that has involved extensive negotiations over many months between the Special Presidential Government Negotiation Team and Evolution’s executive group.

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.”

Evolution Energy Minerals is a sustainable graphite producer focused on the development ready Chilalo Graphite project in Tanzania. The project is in southern Tanzania and hosts a total Mineral Resource Estimate (MRE) of 67.3 million tonnes @ 5.4% total graphitic carbon (TGC) for 3.667 million tonnes of contained graphite.

Images: Evolution Energy Minerals Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.