PERTH (miningweekly.com) – Graphite developer Magnis Resources has signed a memorandum of understanding (MoU) with South Korean major POSCO E&C to advance the funding and construction of the Nachu graphite project, in Tanzania.
Under the terms of the MoU, POSCO would arrange senior loans with financial institutions, while Magnis would arrange subordinate debt and equity, as well as the overall coordination of project funding.
POSCO would also develop a fixed-price lump sum for project execution by the second quarter of 2016, while Magnis would update the Nachu resource and reserve definition and feasibility study to the satisfaction of lenders.
Magnis chairperson Frank Poullas said on Tuesday that having POSCO on board as lead arranger and engineering, procurement and construction consultant highlighted the quality of the Nachu project.
“POSCO has demonstrated time and again that they can bring projects into production on time and with the highest standards,” he noted.
The Nachu project was estimated to host a mineral resource of 156-million tonnes, grading 5.2% graphitic carbon, to contain over eight-million tonnes of contained graphite.
Production would start in the first quarter of 2017.