Evolution Energy Minerals Ltd (ASX:EV1) is set to raise $13 million via a fully committed two-tranche placement of 40,625,000 fully paid ordinary shares to institutional, sophisticated and professional investors at a price of $0.32 per new share.
The placement was strongly supported by existing and new, domestic and offshore investors.
Tranche one of the placement will see the company issue 24,281,250 million new shares to institutional, sophisticated and professional investors at $0.32 per new share, representing 15% of issued capital, raising approximately $7.77 million (before costs).
In tranche two EV1 will issue 16,343,750 new shares at $0.32 per new share to raise $5.23 million, subject to approval of the company’s shareholders, comprising:
- the issue of 10,038,610 new shares at $0.32 per new share to ARCH Sustainable Resources Fund LP (ARCH) which will enable ARCH to maintain its 24.7% interest in Evolution;
- the issue of 5,922,640 new shares to professional and sophisticated investors
- the issue of 312,500 new shares to directors of the company.
The issue price of $0.32 for the new shares represents a 16.9% discount to the last traded price of Evolution shares on the ASX of $0.385 and a 16.6% discount to the five-day volume weighted average price of Evolution shares as at the close of trading on August 5 of $0.384. New shares issued under the placement will rank equally in all respects with existing shares from their respective date of issue.
Use of funds
Money raised will be used primarily to:
- complete front-end engineering design work and an updated definitive feasibility study for the company’s Chilalo Graphite Project (Chilalo);
- carry out feasibility studies on the development of downstream processing facilities;
- extraction of 500 tonnes of Chilalo ore to prepare a bulk sample for product marketing and qualification purposes;
- conduct exploration at Chilalo to provide near-surface high-grade material that will enable an extension of mine life and improved project economics;
- undertake certain early works in connection with the development of Chilalo; and
- working capital and costs associated with the placement.
“We are delighted with the support shown by new and existing investors, in particular the introduction of a number of institutional investors to the Evolution share register. Completion of the placement sees Evolution strongly positioned to aggressively advance our strategy to become a vertically integrated supplier of sustainable graphite products,” Evolution managing director Phil Hoskins said.
“We are seeking to bring the Chilalo graphite mine into production as soon as possible and to establish downstream processing facilities to produce expandable graphite and graphite foil using Chilalo’s coarse flake graphite and battery anode materials using Chilalo’s fine flake graphite.
“We are pleased that ARCH, which currently holds a 24.7% interest in Evolution shares, has committed to participate in the placement so as to maintain its 24.7% interest, a reflection of its confidence in Evolution’s strategy and work programs that are central to delivery of that strategy.”
Timetable
The indicative timetable for the raise is as follows:
