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Evolving Evolution Energy Minerals Ltd
Tel: +61 2 9290 9600
Website: easternmetals.com.au ASX: AW1
Social Media: @EasternMetals Listing date: November 16
Email: info@easternmetals.com.au Chilalo IPO amount: $22 million
Key personnel: Robert Duffin (non-
executive chairman), Wayne Rossiter volution Energy Minerals Ltd executive Share price range since listing: 39-70c
(managing director), Cathy Moises E chairman Trevor Benson is confident the Address: Level 1, Emerald House, 1202
(deputy chair) funding hurdles which have plagued develop- Hay Street, West Perth WA 6005
Focus: Base and precious metals, NSW ment of the Chilalo graphite project in Tanzania Tel: +61 8 9200 3426
and Northern Territory are now greatly reduced. Website: evolutionenergyminerals.com.au
Having worked in the graphite space for Social media: @Evolution_EV1
Comment: the past six years, Benson believes an ESG-
Came to market with a simple business focused approach will help unlock large pools Email: info@ev1minerals.com.au
case – grow the resource, navigate of “green” capital previously not available to the Key personnel: Trevor Benson (executive
the permitting and approvals process, project. chairman), Michael Bourguignon
complete feasibility studies and arrange Shortly after the company was spun out of (executive director), Phil Hoskins (non-
development finance, and in doing so add Marvel Gold Ltd and listed on the ASX in No- executive director), Amanda van Dyke
value for shareholders. Eastern Metals is vember, Evolution officially committed to an (non-executive director)
initiating that strategy via the Arunta project ESG framework designed to ensure the com- Focus: Graphite, Tanzania
in the Northern Territory and the Cobar pany’s ambition to become a choice supplier
deposit in NSW. of sustainable graphite appeals to all corners
of the global investment community.
Evolution has already secured cornerstone
Equinox Resources Ltd support from dedicated ESG investor ARCH

ASX: EQN Sustainable Resources Fund as part of its $22
million IPO. This investment was accompanied
Listing date: October 13 by a pledge for up to $US25 million towards the
IPO amount: $9 million overall funding package for Chilalo.
“Having been in and around graphite for
Share price range since listing: 18-32c some time now, the biggest challenge in
Address: Level 9, 182 St George’s Tce, graphite is funding the development of an op- Trevor Benson
Perth WA 6000 eration,” Benson told Paydirt.
“For Evolution, the absolute No.1 priority
Tel: +61 8 6109 6689 was to not stumble on the ability to get fund- “Very cleverly, the previous management
Website: eqnx.com.au ing. To that end, we were able to get ARCH on were able to ringfence the project with the debt
Social Media: board and they now have a 25% stake in the and were able to move on with their gold pro-
ject until such time that an opportunity came
Email: info@eqnx.com.au company. They are very keen to invest in sus- along to be able to pay back the debt and basi-
Key personnel: Rod Baxter (non- tainable ESG-compliant resource projects and cally buy back the security in the project.
executive chairman), Daniel Taylor saw Evolution as top-tier in that area. That’s an “We always thought it was a hugely under-
(managing director) incredible vote of confidence for investors in valued asset if we could unlock the debt and
this company.
Focus: Iron ore, WA “ARCH have spent a year doing due dili- bring in new investors, alongside the support of
some very loyal shareholders who have been
gence on us which we think opens the door with the story for a long time.”
Comment: for many other ‘green’ funds to become co-
Timing was not on the company’s side investors in the project. So, by having ARCH Following its ASX debut, Evolution launched
in terms of entering the fray amid a more on board, that major risk has been greatly re- a series of value engineering studies designed
buoyant iron ore sector but that failed to duced and we believe funding is very achiev- to improve the project economics and reduce
stop Equinox from kicking a few goals in able.” the carbon footprint at Chilalo. These studies
the months after its ASX debut. A Native Chilalo was on the cusp of development are being led by former Syrah Resources Ltd
Title deed was signed with the Wintawari in early 2020 when Marvel (then known as project manager Michael Bourguignon and
Guruma Aboriginal Corp in December, Graphex Mining) published a DFS which in- are expected to be completed ahead of a final
outlining a framework for how both parties dicated an average graphite concentrate pro- investment decision on a proposed construc-
will work together during the development duction rate of 50,000 tpa would generate a tion start in the second half.
and potential operations of the Hamersley post-tax NPV of $US323 million, IRR of 34% “It’s a unique situation where you get to float
iron ore project. This milestone was and average annual EBITDA of $US73 million. a company with an economic DFS,” Benson
preceded by the appointments of CSA Debt funding had also been lined up for the said. “There’s been $20-odd million spent on
Global as geological consultants and $US87.4 million project. However, the global the project already which gives us a big leg-up,
former Rio Tinto Ltd executive and iron COVID-19 pandemic then threw a massive but there’s still plenty to do.
ore specialist Graham Fyfe as chief spanner in the works and Graphex was left “We’re tweaking and optimising the DFS,
operating officer. with a $9.5 million debt overburden. we’ve started work on an extensive explora-
tion campaign, renewing the Relocation As-
“Unfortunately, that funder was primarily an sistance Programme and we’ll update our
aeroplane leasing company and we all know environmental studies to the new World Bank
what’s happened to anyone leveraged to the IFC standards.”
airline industry during COVID-19,” Benson ex-
plained. – Michael Washbourne

aUSTRaLIa’S PaYDIRT FeBRUaRY 2022 Page 39