PERTH (miningweekly.com) – Junior graphite developer Kibaran Resources has inched closer to securing $77-million in financing to build its Epanko project, in Tanzania.
The company reported on Wednesday that it had received a summary of indicative terms from German bank KfW IPEX for senior debt financing of up to $40-million.
Kibaran signed a mandate letter with KfW IPEX in October last year to explore financing options for the Epanko project.
Kibaran has also received an expression of interest from South African financier Nedbank for debt funding of up to $30-million to develop the Epanko project.
“The progress being made with KfW IPEX and Nedbank on the senior debt financing, together with production offtake agreements with major German groups, supports the strategy that our Tanzanian graphite project will be a major supply chain to the European markets, led by Germany,” Kibaran MD Andrew Spinks said on Wednesday.
“Kibaran remains focused and on track to be a major long-term, stable supply alternative to existing graphite supply and is progressing discussions for additional strategic alliances and agreements.”
Kibaran said the final outcomes of negotiations with both banks were subject to due diligence, with the company also continuing ongoing discussions with other financial providers, including bilateral agencies, commercial banks, institutions and private fund managers.
An updated production growth strategy had shown the project could deliver a combined 150 000 t/y of graphite concentrate by its sixth year of operations, a 50% increase over the initial estimates of 100 000 t/y.
Kibaran had secured all mining licences and environmental approvals for the Epanko project and it was anticipated that first production would start about 17 months after the completion of project financing.