Evolution Energy Minerals Ltd (ASX:EV1) has confirmed a prospecting licence for the Chilalo Graphite Project in Tanzania is in good standing.
It comes after the graphite explorer and project developer entered a consultation period with the Government of Tanzania for the licence, known as PL 11034/2017, and lodged a renewal application in 2021.
Based on this development and a share exchange agreement Evolution holds with fellow ASX-lister and major shareholder Marvel Gold Ltd (ASX:MVL), EV1 has paid Marvel $1 million in cash.
Last year, Marvel agreed to spin out Evolution and the Chilalo asset into its own public entity, in exchange for 50 million EV1 shares and a $2 million cash consideration.
Following the confirmation of good standing and the second $1 million payment, Evolution has also met the cash requirements to acquire the Chilalo Graphite Project.
About Evolution
Evolution is committed to supplying sustainable graphite solutions for the global green economy and in doing so, creating the first net-zero carbon graphite mine.
A definitive feasibility study confirmed the opportunity to produce high-quality flake graphite at Chilalo and the company intends to apply Chilalo flake graphite to downstream processing to produce battery anode material, expandable graphite, micronised graphite and graphite foil.
The Chilalo Project hosts a high-grade mineral resource of 20.1 million tonnes at 9.9% total graphitic carbon for 1,991,000 tonnes of contained graphite, as shown below.
EV1 is relatively new to the ASX, having only listed in November 2021.
The graphite explorer and project developer executed an oversubscribed $22 million initial public offering (IPO) late last year in order to hit the boards.
Under the capital raise, investors bought in at $0.20 a pop, providing an implied market capitalisation of $32 million once the IPO concluded.
Nowadays, Evolution is trading in a $80.93 million market cap, with shares valued at $0.50 apiece prior to market open on Monday.