Evolution Energy Minerals Ltd announced that its 84% owned subsidiary, Kudu Graphite Limited, has signed a non-binding term sheet with ARCH EM PCC Limited for a US$2 million commitment through the issuance of secured convertible loan notes. The notes will be issued in multiples up to US$250,000, offering a 24‐month conversion period from the first drawdown. Under the deal, Kudu will incur a 1% annualized commitment fee on any undrawn amount, as well as a 5% arrangement fee on the full commitment upon the first drawdown. The interest on the notes is set at SOFR plus 10% per annum, accruing daily and compounding semi-annually, with payments available in cash or as payment-in-kind. The infusion of funds is intended to reinforce Kudu’s balance sheet and to support expenditure on the Chilalo Graphite Project, while also providing limited support for corporate costs at Evolution Energy Minerals Ltd. The transaction remains subject to approvals from ARCH, finalization of documentation, and required shareholder approval from Evolution. The company’s Executive Director highlighted that this financial commitment reflects strong confidence in the project’s development and signals a focus on accelerating growth, including planned value accretive project acquisitions in Africa. Bullish sentiment arises from the involvement of a major financial backer and the potential for improved balance sheet health and project progress, which could boost investor confidence and support future growth. On the other hand, the non-binding nature of the term sheet, along with the complex fee and interest structure, introduces an element of risk. The deal’s ultimate success depends on securing the necessary approvals and completing the long-form agreements, factors that may temper short-term enthusiasm among cautious traders.