RENO: Evion Group NL, an Australian graphite developer, said Tuesday it has secured an exclusive option to acquire the CARP Fluorspar Project in Lincoln County, Nevada, a historically producing critical mineral asset that positions the company to help reduce U.S. reliance on imported fluorspar.
The binding share sale agreement with Globex Nevada Inc. gives Evion the right to purchase 100% of 14 contiguous lode claims covering 117 hectares in the Viola Mining District. The company has also staked 45 adjoining claims totaling roughly 376 hectares that it considers highly prospective for additional fluorspar discoveries.
Fluorspar, a mineral designated as critical by the United States, European Union, Australia and Japan, is an essential input for semiconductor chips, lithium-ion batteries, nuclear fuel processing, aerospace and defense supply chains. The U.S. currently imports 100% of its fluorspar, with no meaningful domestic production since 1990.
“We’re delighted to have secured the Carp Fluorspar Project in Nevada and stake the surrounding claims,” said David Round, managing director of Evion Group. “The project area has a strong history of producing high-grade fluorspar concentrate, and our early assessment suggests the existing project ground and adjacent staked claims are highly prospective for future development.”
The project has documented historical production of approximately 44,900 tonnes at an average grade of about 69% calcium fluoride from four open pits between 1958 and 1971. The material was sold directly to Kaiser Steel Corp. as metallurgical-grade product without prior concentration.
The acquisition comes as the U.S. government moves to secure domestic critical mineral supply chains. The Defense Logistics Agency recently awarded a $168.9 million fluorspar supply contract, reflecting heightened focus on reducing reliance on Chinese-controlled sources. China accounts for 59% of global fluorspar production, according to the announcement.
To fund the acquisition and related exploration, Evion has secured firm commitments to raise A$6.635 million through a two-tranche share placement at A$0.03 per share. The placement includes A$100,000 in director participation and was supported by institutional and strategic investors in Australia and the U.S.
Under the option agreement, Evion must make cash payments totaling US$1.61 million and share issuances valued at US$2.0 million over three years, plus commit US$3.75 million in exploration expenditures over four years. Upon exercising the option, Globex Nevada Inc. will receive a 3% royalty on gross revenue from the project.
Evion plans to conduct surface sampling, geological mapping and drill program planning in the coming months. The company said it will release verification results from a 2024 sampling program in the coming weeks.
The acquisition establishes Evion as the only Australian Securities Exchange-listed company with exposure to both graphite and fluorspar development projects. The company’s Maniry Graphite Project in Madagascar has received recognition under the EU Critical Raw Materials Act as a preferred graphite supplier to Europe.
Round said the diversification into fluorspar fits the company’s strategy to become a leading producer of critical minerals. “Given our strong relationships with the EU and ongoing support from partners in the USA, we are very excited about this acquisition,” he said.