Evolution Secures Binding Term Sheet with Oscillate for Chikundo VHMS Prospect
Deal News | Mar 31, 2025 | arch emerging markets partners
Evolution Energy Minerals Limited has entered into a binding term sheet with Oscillate Plc. The agreement is set to allow Oscillate to farm into Evolution's interests in the Chikundo VHMS copper-lead-zinc prospect within the Chilalo Graphite Project in Tanzania. Oscillate is committed to funding a minimum of A$4.5 million in exploration expenditure over two phases, with an additional option to acquire Evolution's entire holding for A$3 million in cash. A JVCo will be established with the Tanzanian Government for these prospects. The transaction aligns with Evolution's strategic pivot towards focusing on the Chilalo Graphite Project, which holds significant global potential. Meanwhile, the financial backing includes immediate payments and deferred consideration tied to the copper resources acquired, or a smelter royalty.
Sectors
- Mining and Metals
- Private Equity and Venture Capital
Geography
- Tanzania – The Chikundo VHMS copper-lead-zinc prospect and the Chilalo Graphite Project are located in Tanzania.
- Australia – Evolution Energy Minerals Limited is listed on the Australian Securities Exchange (ASX).
Industry
- Mining and Metals – The article discusses mining activities related to copper, lead, zinc, and graphite prospects in Tanzania.
- Private Equity and Venture Capital – The involvement of ARCH Emerging Markets Partners highlights the role of private equity backing in the transaction.
Financials
- A$4.5 million – Minimum exploration expenditure to be funded by Oscillate over two phases.
- A$3 million – Cash option for Oscillate to acquire Evolution's entire holding in Chikundo.
- A$300,000 – Non-refundable cash fee paid by Oscillate for exclusivity upon signing the Term Sheet.
- A$100,000 – Additional non-refundable fee payable upon signing the binding agreements.
- A$0.03/lb – Deferred cash consideration per lb of contained copper or a 1.0% net smelter royalty.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Evolution Energy Minerals Limited | Target | Company | An Australian-based mining company focused on graphite and base metals. |
| Oscillate Plc | Buyer | Company | A company entering into a farm-out agreement with Evolution for Chikundo prospects. |
| ARCH Emerging Markets Partners | Private Equity Firm | PE Firm | A private equity firm backing Evolution’s operations. |
| Government of Tanzania | Partner in JV | Government | Participating in the joint venture for the development of Chikundo and other prospects. |
| Kudu Graphite Limited | Subsidiary | Company | Evolution Energy’s Tanzanian subsidiary holding the licenses for the prospects. |