Evolution Energy Minerals (ASX: EV1) has welcomed a successful meeting with the Special Presidential Government Negotiating Team and a review by the Attorney General for the framework agreement and shareholders agreement for the ownership, development, and management of the company’s Chilalo Graphite Project.
The company says the review is now in a form that has been agreed with the Tanzanian Government.
Evolution now awaits notification of the formal public signing ceremony with respect to the agreements, which, at this stage is expected to take place in March 2023.
Completion of the agreements is a critically important step forward in the development of Chilalo.
* Agreements confirm the Tanzanian Government’s 16% non-dilutable free carried interest shareholding and commitment to jointly develop Chilalo.
* A new joint venture company, Kudu Graphite Limited (Kudu), which has been established for the purpose of holding the Chilalo licences and permits and undertaking the development of Chilalo has been incorporated and will be owned as to 84% Evolution (indirectly) and 16% Tanzanian Government.
* The agreements provide for a reissued 10-year term to the Mining Licence and reissued terms for all Prospecting Licences.
* A public signing ceremony before the President of Tanzania, Her Excellency Samia Suluhu Hassan, which at this stage is expected to be held in March 2023.
“Settling these agreements with the Tanzanian Government is a critical step forward in the development of our Chilalo Project,” Managing director, Phil Hoskins, said.
“Financiers require certainty around the operation of the Tanzanian Government’s free carried interest and the completion of these agreements provides that certainty. Together with the updated DFS, 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 recognize 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 south-east Tanzania for the benefit of all stakeholders.”
The agreements specify the key rights and obligations of the parties, as shareholders of Kudu, with respect to the ownership, development, and management of Chilalo.
Under the framework agreement, the Tanzanian Government has agreed to facilitate the procurement of the rights, permits, and approvals necessary for the establishment, development, and operation of Chilalo, subject to Kudu’s compliance with Tanzanian procedural and statutory requirements. Fiscal and taxation assumptions and arrangements reflect current Tanzanian legislation and regulatory requirements.
For further information please visit: http://ev1minerals.com.au/