• Evolution Energy signs binding term sheet for coarse flake downstream JV
  • Prospect Resources enters lithium project in Namibia
  • Arcadia Minerals progresses DFS at Swanson Tantalum-Lithium Project

Here are the biggest small cap resources winners in early trade, Thursday September 29.



In May 2022, Evolution Energy Minerals signed a binding off-take agreement with China’s Yichang Xincheng Graphite Co (YXGC) to supply 30,000 tonnes per annum of flake graphite concentrate (from +100 mesh up to +32 mesh) for three years from first production at the Chilalo Graphite Project.

In addition to this off-take, both parties are now seeking to establish downstream manufacturing outside China which allows Evolution to capture greater margins.

EV1 says a binding term sheet envisages the establishment of a processing facility for the processing of 25,000tpa of coarse flake concentrate into high-value graphite products including graphite foil, bi-polar plates, and seals for electric vehicles.

A preliminary review of suitable locations, with a focus on Europe and the Middle East, has been undertaken and EV1 believes it is in a strong position to capitalise on the opportunity for international expansion.

“YXGC is a global leader in the processing of coarse flake graphite to manufacture high-value products such as graphite foils,” Evolution’s managing director Phil Hoskins says.

“Combining Chilalo’s high-quality coarse flake graphite with YXGC’s experience, technology and know-how will enable Evolution to capture additional margins and maximise the value of Chilalo.”

EV1 is a ~$42.8m market cap company with $5.3m cash in the bank as of July 29.



PSC recently sold its 72.7Mt Arcadia lithium project in Zimbabwe to a subsidiary of lithium-ion battery material producer, Zhejiang Huayou Cobalt Co, for ~$466m net.With the Arcadia transaction now complete, finding new projects became PSC’s top priority.

Today, it announced the expansion of its sub-Sarahan presence with an agreement to earn up to 51% interest in Omaruru, a lithium project in Namibia.

Under the agreement, Prospect will pay US$1m for 40% and US$560,000 for a further 11%, totalling an earn-in of 51%.

Further development funds will then be contributed on a pro-rata basis.

“The project offers a unique combination of great location, with the potential to establish a resource quickly, with walk-up drill targets and a great operating environment,” PSC managing director and CEO Sam Hosack says.

“This is a high quality and advanced exploration play, which we are looking forward to commencing drilling activities.”



(Up on no news)

This ~$88.9m market cap coal company may be riding high on no news this morning however on Tuesday revealed a fully underwritten renounceable rights issue offer of new shares at an issue price of A$0.20 per share for eligible shareholders in Australia and New Zealand.

The funds raised will be used by the company to meet its equity contribution, fund the continued development of the Makhado Coking Coal Project in South Africa’s Limpopo province, and reduce debt owed under the current Standby Facility which is roughly A$5.09m.



AM7 says it has secured the supply of essential utilities and entered into an agreement with respect to the use of land over the mining licence area at the Swanson Tantalum-Lithium Project in Namibia.

These licences have been procured in anticipation of a definitive feasibility study, the company says.

AM7’s subsidiary, Orange River Pegmatite (ORP) concluded a water supply agreement with Namibia Water Corporation, a corporation established in terms of section 2(1) of the Namibia Water Corporation Act, 1997 (NamWater).

NamWater is to supply 210 cubic meters of water per day from NamWater boreholes at Warmbad (roughly 21km north of the Swanson Tantalum/Lithium Project) utilising the proposed Swanson Mine Water Supply Scheme.

The Supply Scheme will be constructed by ORP to provision the supply of water to the Mining License.



(Up on no news)

BTR’s Alpha Project, about 15kms from the Brightstar processing facility in the Laverton Gold Belt of Western Australia, returned high-grade gold hits on Tuesday up to 5m at 9.8 g/t gold from 98m and 2m at 11.3 g/t gold from 88m, as well as 1m at 21.4 g/t gold from 88m.

A total of 12 holes were completed for 1,260m with BTR managing director Bill Hobba revealing the company’s excitement towards the resource development works after eight years without significant activities on the project.

“This first round of drilling shows potential for further extensions of this western zone of the project in an area that has not previously been mined,” he says.

“When combined with potential for growth of the main Alpha lode we are eager to discover the true scale of this mineralised system.”