Evolution Energy Minerals has ramped up exploration at its Chikundo Copper Project while stabilising its finances and navigating regulatory hurdles in Tanzania. The company is preparing for drilling in 2026 despite a tight cash position.
- Large-scale soil sampling program underway at Chikundo Copper Project
- Major reduction of outstanding creditors and overhead costs
- Ongoing regulatory engagement with Tanzanian Mining Commission
- Strategic funding discussions initiated for Chilalo Graphite Project
- Cash reserves critically low at $137,000 with $850,000 net operating cash outflow
Exploration Momentum Builds at Chikundo
Evolution Energy Minerals Limited (ASX, EV1) has made significant progress during the December 2025 quarter, focusing its efforts on advancing exploration at the Chikundo Copper Project in Tanzania. A large-scale soil sampling program commenced in late November, targeting priority areas identified through historical data and recent geological analysis. With three field teams collecting over 600 samples by early December, the program aims to refine the company’s volcanic massive sulphide (VMS) geochemical model and set the stage for a planned reverse circulation (RC) drilling campaign in 2026.
Financial Housekeeping and Corporate Streamlining
Following a capital raising in September 2025, Evolution Energy Minerals has used available funds to retire nearly all outstanding creditors, simplifying its balance sheet and enabling a sharper focus on project development. The company has also aggressively reduced overheads by closing its Perth office, cutting non-essential staff in Australia and Tanzania, and terminating contractors. These measures reflect a leaner operating model designed to preserve cash amid challenging market conditions.
Regulatory Engagement and Project Development
On the regulatory front, the company continues to engage with the Tanzanian Mining Commission regarding its Chilalo Graphite Project mining licence (ML 716/2023). An inspection originally scheduled for December was deferred to late January 2026, underscoring ongoing dialogue with government authorities. Meanwhile, Evolution Energy has committed to an updated development schedule targeting first ore production by October 2027, signaling its intent to advance the graphite project alongside copper exploration.
Funding Initiatives and Cash Position
To support its dual-project strategy, Evolution Energy engaged Satoshi Capital Advisors in December to assist with funding initiatives for the Chilalo Graphite Project. Despite these efforts, the company’s cash position remains tight, with only $137,000 on hand at quarter’s end and a net operating cash outflow of $850,000. Management expresses confidence in securing additional funding, noting that the recent overhead reductions and creditor retirements improve financial flexibility. However, the short cash runway highlights the urgency of successful capital raising to sustain operations and exploration activities.
Looking Ahead
With soil sampling results pending laboratory analysis in South Africa, the company’s next key milestone will be the refinement of drill targets and commencement of RC drilling at Chikundo. Simultaneously, the outcome of the Tanzanian Mining Commission’s inspection and progress on funding will be critical to maintaining momentum. Evolution Energy’s ability to navigate these operational and financial challenges will be closely watched by investors eager for tangible progress in both copper and graphite projects.
Bottom Line?
Evolution Energy’s exploration advances are promising, but its tight cash position demands swift funding success to keep projects on track.
Questions in the middle?
- When will soil sampling results be released and how might they impact drilling plans?
- What are the prospects and timeline for securing additional funding to extend the company’s cash runway?
- How will the Tanzanian Mining Commission’s inspection influence the permitting and development schedule for Chilalo?