LONDON: Metals One Plc (AIM: MET1), a critical and precious metals exploration company, said Friday it has acquired a 10.45% stake in Evolution Energy Minerals Ltd (ASX: EV1) and agreed to underwrite part of Evolution’s A$1.45 million Rights Issue.
The investment provides Metals One exposure to Evolution’s Chilalo Graphite Project in Tanzania, a development-ready asset with a post-DFS NPV8 of A$518 million and binding offtake agreements covering more than 90% of production.
Metals One purchased 37.9 million Evolution shares from Marvel Gold Ltd (ASX: MVL) at A$0.011 per share, totaling A$416,900. The company will also underwrite up to A$530,000 of Evolution’s Rights Issue at A$0.01 per share. Upon completion, Metals One could hold up to 17.37% of Evolution’s enlarged share capital.
“This strategic stake gives our shareholders exposure to a high-quality graphite project at an attractive entry point,” said Jonathan Owen, CEO of Metals One. “Chilalo has robust economics, tier-one offtake partners, and sits within a tightening global graphite supply chain.”
The Chilalo project, located in Tanzania’s Nachingwea region, hosts a JORC Indicated and Inferred Resource of 67.3 Mt at 5.4% TGC. It is supported by technical partnerships with YXGC and BTR New Material Group, positioning it as a potential supplier to ex-China markets amid rising tariffs and export controls.
Graphite has been designated a strategic mineral by the U.S., EU, and Japan, driven by demand for lithium-ion batteries. The U.S. recently imposed a 93.5% tariff on Chinese graphite imports, further elevating the importance of alternative supply sources.
The underwriting is considered a Related Party Transaction under AIM rules, as Metals One Chairman Craig Moulton is also an executive director of Evolution. Independent directors deemed the terms fair and in shareholders’ best interests.
Metals One’s investment marks a strategic diversification into graphite, complementing its existing portfolio of uranium, nickel, copper, PGE, and gold assets.