$13M raised to progress project development

This morning our 2021 Wise-Owl Pick of the Year Evolution Energy Minerals (ASX: EV1) came out of a trading halt having completed a capital raise.

EV1 raised a total of $13M at 32c per share via a placement to private investors.

Importantly we saw ARCH capital partners show intent and commit to maintaining their 24.7% shareholding in the company by participating in the placement.

EV1’s managing director Phil Hoskins also said that the placement allowed for ““the introduction of a number of institutional investors to the Evolution share register”, which is good timing given the company is progressing its project towards a final investment decision targeted for the end of this year.

EV1 is adding to its ~$5.37M cash balance (at 30 June 2022) which should mean it has ~$18.37M in cash post placement,

EV1 plans to use its balance sheet strength to complete the following:

• Front end engineering design work and delivery of an updated definitive feasibility study for its graphite project.
• Progress the company's downstream strategy.
• Product qualification and marketing.
• Drilling for near surface high grade material to improve project economics

The placement shares will come onto market in two separate tranches, the first tranche of 24,281,250 EV1 shares are expected to be issued on 19 August 2022 and the remaining 16,343,750 will be issued after shareholder approvals in early October (expected on the 5th of October 2022).