ASX-listed graphite development company Evolution Energy Minerals (ASX:EV1) has settled an agreement with the Tanzanian government regarding the ownership, development, and management of the Chilalo Graphite Project.
The company says a new joint venture (JV) company called Kudu Graphite has been established to hold the Chilalo licences. Evolution will retain an indirect 84% interest in the JV through its wholly owned subsidiary Evolution Energy Minerals UK, while the Tanzanian government will hold the remaining 16% free carried interest.
Under the framework agreement, Evolution reports the Tanzanian government has agreed to facilitate the procurement of the rights, permits, and approvals necessary for the establishment, development, and operation of Chilalo which is subject to Kudu’s compliance with Tanzanian procedural and statutory requirements.
Commenting on the agreement, Evolution Energy Minerals Managing Director Phil Hoskins says: “Settling these agreements with the Tanzanian Government is a critical step forward in the development of our Chilalo Project.
Financiers require certainty around the operation of the Tanzanian Government’s free carried interest and the completion of these agreements provide that certainty. Together with the updated DFS (Definitive Feasibility Study), which is expected to be released in the coming weeks, we believe Evolution is well placed to advance the development of Chilalo.
We have worked closely with the Tanzanian Government for an extended period of time and recognise that aligning with the Government and with the people of Tanzania is fundamental to unlocking the value of our Chilalo Project. We now look forward to partnering with the Tanzanian Government as we strive to establish a commercial scale graphite mine in southeast Tanzania for the benefit of all stakeholders.”
“We now look forward to partnering with the Tanzanian Government as we strive to establish a commercial scale graphite mine in southeast Tanzania for the benefit of all stakeholders”
Evolution reports it is now waiting to complete a formal public signing ceremony for the agreement which is expected to take place in March 2023.
Evolution Energy Minerals is an ASX-listed graphite development company focused on the Chilalo Graphite Project in Tanzania which has an average graphite concentrate production of 50,000 tonnes per annum.
Images: Evolution Energy Minerals Ltd & iStock
