ESG investor ARCH cornerstones IPO of graphite miner Evolution Energy Minerals

Thomson Geer has advised UK-based investment advisor ARCH Emerging Markets Partners (ARCH) on the cornerstone investment by ARCH Sustainable Resources Fund (ARCH SRF) in Evolution Energy Minerals.

Evolution raised A$22 million for its listing on the Australian Securities Exchange, after being spun out of gold miner Marvel Gold.

The funds raised from the IPO will enable Evolution to continue development of its Chilalo Graphite Project in Tanzania. Graphite is a key ingredient in the production of energy efficient batteries, which are likely to see increased demand as the world transitions to a low carbon energy future.

ARCH raises and invests private capital in emerging markets to aid their rapid transition to low carbon, climate resilient and sustainable economies. This approach brings long-term sustainable value and helps emerging markets avoid carbon intensive industries and environmentally and socially unethical practices. ARCH believes that there is an intrinsic interconnection between financial and ESG aspects that build more resilient and valuable companies.

Thomson Geer worked with ARCH to ensure Evolution met its ESG investment criteria. This included the implementation of an ESG Committee and ESG Framework, along with an associated ESG compliance matrix to ensure that ESG will be central to Evolution’s ongoing growth.

Partner Hedley Roost said: “We are pleased to have advised ARCH SRF on its first investment as a fund. Over recent times ESG and ESG compliance has become a touchstone for international market participants and we expect to see increased activity from ESG funds such as ARCH SRF in Australian capital markets. It will be interesting to follow how ESG compliance evolves as investors and shareholders apply pressure on companies to address ESG issues.”

The Thomson Geer team was led by partners Michael Bowen and Hedley Roost and included special counsel Cameron Bill and lawyer Sarah Urquhart.

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