Photo by: Bloomberg
PERTH (miningweekly.com) – Junior explorer Kibaran Resources has completed a A$3.1-million share placement to progress its flagship Epanko graphite project, in Tanzania.
The ASX-listed company on Friday announced that it had issued some 23.1-million shares, at a price of 13.5c each to a combination of existing investors, as well as sophisticated retail investors and funds.
“The strong demand highlights that investor interest remains strong for quality resources and is recognition of Kibaran’s advanced technical progress, binding offtake agreement and exceptional investment value the company represents,” said executive director Andrew Spinks.
He noted that the broadening of the company’s shareholder base with several new institutional investors was a positive development, and provided Kibaran with a solid foundation to grow.
The funds raised in the placement would be used on a diamond drilling programme at Epanko, as well as metallurgical and pilot plant test work, feasibility studies and the application for a mining licence.
Earlier this year, Kibaran 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.
Kibaran said on Friday that the company was continuing to advance discussions with Richland, and if the negotiations were successful, it would divert some of its funding to the Merelani-Arusha project.