Evion Group NL has acquired an option to acquire the CARP fluorspar project in Lincoln County, Nevada, US, a move that will establish a critical minerals platform.
Evion has entered into a share sale and purchase agreement to acquire Carp Fluorspar Pty Ltd. for an initial consideration of US$150,000 cash and an issue of shares in Evion equivalent to US$250,000 at the time of issue.
Evion will also pay deferred payments totalling US$1.46 million in cash and US$1.75 million in shares over three years.
The acquisition positions Evion as the only ASX-listed company with a dual portfolio in both graphite and fluorspar development projects.
The CARP Project is a historically significant asset within the Tier-1 mining jurisdiction of Nevada, having previously produced roughly 44,900 tonnes of fluorspar at a high average grade of 69 per cent calcium fluoride.
Evion has also staked 45 adjoining mining claims, expanding its footprint by an additional 376 hectares in a district considered highly prospective for new discoveries.
Evion Managing Director David Round said the deal is a perfect fit for the company’s diversification strategy.
“We believe this project, commodity and location fits perfectly within our strategy to be a leading producer of vitally important critical minerals in the future,” Round said.
“In considering this acquisition, we carefully reviewed the economic and geopolitical dynamics that currently exist for this commodity and discovered, as others have too, that the U.S. is a large consumer of this material but has previously relied on imports from China and other parts of the world.”
Fluorspar is currently listed as a critical mineral by Australia, the US, and the EU. It serves as an irreplaceable component in the manufacture of semiconductors, lithium-ion batteries, nuclear fuel, and aerospace technologies.
Despite its industrial importance, the US is currently 100 per cent reliant on imports. The strategic value of the mineral was recently underscored by a US$168.9 million supply contract awarded by the U.S. Department of War, highlighting the urgency of securing domestic supply chains.
To fund the expansion and continue development of its Maniry Graphite Project, Evion has received firm commitments to raise A$6.635 million through the issue of 217,833,333 million shares at a price of 3 cents per share.
Over the next 12 months, Evion plans to undertake extensive surface sampling, geological mapping, and drill planning to confirm historic high grades and move the CARP Project toward modern production.
