Evolution Energy Minerals (ASX:EV1) said its 84%-owned subsidiary, Kudu Graphite, signed a non-binding term sheet with ARCH EM (GSY) PCC for a $2 million commitment to be made through the issue of secured convertible loan notes, according to a Tuesday filing with the Australian bourse.

The notes will be issued in integral multiples of no more than $250,000, with a 24-month conversion period from the first drawdown date, the filing said.

The notes issue is contingent on ARCH approvals, finalizing long-form documentation, and the company securing shareholder approvals, per the filing.