Kudu Secures $2M Commitment from ARCH for Growth
Deal News | Jun 03, 2025 | arch emerging markets partners
Evolution Energy Minerals Limited, an ASX-listed company through its 84% owned subsidiary, Kudu Graphite Limited, has secured a non-binding term sheet with ARCH EM (GSY) PCC Limited for a financial commitment of $2 million. The funding will be issued through secured convertible loan notes, with Kudu responsible for issuing the notes, which include a 24-month conversion period, a 1% commitment fee, and a 5% arrangement fee paid on the first drawdown. The funds, accruing interest at SOFR + 10%, are poised to bolster Kudu's balance sheet, support asset expenditures, and fund specific corporate costs for Evolution. Final execution of this agreement hinges on several internal approvals and remains subject to change. The board of Evolution Energy will keep stakeholders informed as proceedings evolve.
Sectors
- Mining
- Private Equity
Geography
- United Kingdom – ARCH EM (GSY) PCC Limited is based in the UK, making this geography relevant for the article.
- Australia – Evolution Energy Minerals Limited is an ASX-listed company, linking its activities to Australia.
- Africa – The Chilalo Graphite Project, a significant component of Kudu's operations, is located in Africa, marking its importance to the article.
Industry
- Mining – The article involves Kudu Graphite Limited, which is engaged in the graphite mining industry, focusing on the development of the Chilalo Graphite Project.
- Private Equity – ARCH EM (GSY) PCC Limited, the private equity firm, is instrumental in providing financial backing, reflecting its role within the private equity industry.
Financials
- US$2 million – The financial commitment made by ARCH to Kudu Graphite Limited.
- SOFR + 10% per annum – The interest rate applicable on the convertible loan notes.
- 24-months – The conversion period for the loan notes.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Kudu Graphite Limited | Target company | Company | A subsidiary of Evolution Energy involved in graphite mining projects. |
| Evolution Energy Minerals Limited | Parent company | Company | Publicly listed on the ASX, holds an 84% stake in Kudu Graphite. |
| ARCH EM (GSY) PCC Limited | Private Equity | Company | The firm providing the $2 million financial commitment through convertible loan notes. |
| Craig Moulton | Executive Director | Person | Executive Director with Evolution Energy, commenting on the partnership. |