Graphite spinout launches $22m IPO

Marvel Gold’s graphite spinout is seeking to raise $22 million ahead of its ASX listing in November.

Today, Marvel said Evolution Energy Minerals had lodged a prospectus with the Australian Securities and Investments Commission to issue 110 million shares through its IPO at 20 cents each.

Chieftain Securities and Ashanti Capital are acting as joint lead managers to the raise, which includes an $8 million investment from ESG-focused fund ARCH Sustainable Resources.

Evolution is seeking to raise $22 million in total, up from the initial $13 million IPO announced by Marvel in May when it proposed to demerge its Tanzanian graphite project, Chilalo, into a new listed entity.

The IPO includes priority offers to Marvel and ARCH, worth $2 million and $8 million, respectively, and is scheduled to close on October 25.

Trevor Benson-chaired Evolution is expected to begin trading the following month.

“This is a landmark milestone in the development of the Chilalo project, an advanced graphite asset of the highest quality,” Mr Benson said.

“On completion of the IPO, Evolution will be well funded and with a team that has substantial experience in graphite and project development in Africa, strongly positioned to realise the value of Chilalo.

“We are particularly pleased to welcome ARCH SF as a cornerstone shareholder, whose financial support and ESG expertise will assist Evolution in its objective of becoming a producer of sustainable graphite products for the global green economy.”

Marvel managing director Phil Hoskins said the spinout and subsequent listing would deliver non-dilutionary funding to the Mali-focused explorer while ensuring its shareholders retained exposure to the Chilalo project.

The company's shares closed down 2.8 per cent on Wednesday to trade at 6.9 cents.