PERTH (miningweekly.com) – Junior explorer Kibaran Resources has signed a non-binding memorandum of understanding (MoU) with Aim-listed Richland Resources to consolidate its Merelani-Arusha graphite project, in Tanzania, with other assets in the region.
Under the terms of the MoU, the two companies have agreed to undertake due diligence and to work towards a legally binding agreement to consolidate their respective graphite assets into a joint venture (JV).
The assets would include TanzaniteOne Mining’s graphite processing plant, which is wholly owned by Richland, and which was closed in the late 1990s, owing to a change in focus to the production of tanzanite.
The JV would provide Kibaran with a second source of graphite in Tanzania, as well as a clear strategy to expand its future graphite production.
Kibaran has a 90-day exclusive period to complete due diligence studies.
“Following the recent milestone achievement of a signed binding offtake agreement for Epanko graphite, we are pleased to be in negotiations to progress the company’s Merelani-Arusha graphite project with the Richland group,” said Kibaran executive director Andrew Spinks.
“This is in line with Kibaran’s primary objective of becoming a significant, long-term producer of premium quality graphite.”
Kiraban’s Merelani-Arusha project consists of seven tenements covering some 973.4 km2. The project is located 12 km east of TanzaniteOne Mining’s Merelani tanzanite and graphite mine.