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    Evolution Energy Minerals secures 50% offtake for Chilalo coarse graphite

    Evolution Energy Minerals (ASX: EV1) reports that it has entered into a binding offtake deal with Yichang Xincheng Graphite Co (YXGC) for 30,000tpa of coarse graphite from its Chilalo Project in Tanzania.

    The agreement, which will run for the first three years of operation at Chilalo, will cover over 50% of production and 70% of forecasted revenue over the same period.

    Speaking on the agreement, Evolution Managing Director Phil Hoskins said: “We are delighted to sign this cornerstone offtake agreement with YXGC, which significantly de-risks the project financing of our Chilalo Project. The agreement is the culmination of a significant amount of work that we have undertaken with YXGC over many years and is testament to the strong relationship and mutual respect we enjoy with YXGC. 

    “We are delighted to sign this cornerstone offtake agreement with YXGC, which significantly de-risks the project financing of our Chilalo Project”

    YXGC is internationally renowned as a leading manufacturer of expandable graphite and high-value graphite products and the company believes that its partnership with YXGC is critical to securing the finance for development of Chilalo. 

    Furthermore, this offtake agreement is part of a broader collaboration to combine Chilalo’s high-quality product with YXGC’s industry-leading technology as part of a downstream operation to supply western customers with expandable graphite, graphite foil and a multitude of other high-value products.”

    YXGC, a pioneer in the use of graphite foil in green hydrogen batteries, has stated that the premium quality coarse flake concentrate produced at Chilao will provide ideal feedstock for its operations.

    In addition, Evolution notes that it expects to complete ‘numerous’ project-finance related milestones over the coming months, which will include:

    • Sales arrangement for fine flake product from Chilalo for use in the manufacture of battery anodes
    • A framework agreement with the Government of Tanzania to provide fiscal and regulatory certainty for the development of Chilalo;
    • Appointment of project finance advisors;
    • Updated definitive feasibility study

    The Chilalo Project is located in Tanzania and boasts an Indicated and Inferred total Mineral Resource Estimate of 67.3Mt @ 5.4%, containing 3,667kt.

    The Project also provides potential for multi-decade mine life, as Evolution plans to define additional near-surface deposits to grow the resource and reserve.

    The offtake agreement is subject to a series of conditions precedent including:

    • Execution of a binding agreement with respect to the downstream JV in Europe as contemplated in the existing memorandum of understanding (MOU)
    • Execution of a binding toll treatment agreement as contemplated by the MOU;
    • Evolution notifying YXGC that it has obtained the necessary finance and commented construction of the Chilao Project before 31st December 2022;
    • Commencement of production of graphite concentrate at the Chilao Project before 31st March 2024
    Adam Drought
    Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.

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    • Delayed Prices (USD) - Last Updated 01-07-2022
    • Gold $1,819.00
    • Silver $20.75
    • Platinum $916.00
    • Palladium $1,898.00
    • Dalian Iron Ore i2209 $121.63
    • Aluminium $2,491.00
    • Cobalt $72,460.00
    • Copper $8,365.50
    • Lead $1,971.00
    • Nickel $23,158.00
    • Tin $26,800.00
    • Zinc $3,333.00