JOHANNESBURG (miningweekly.com) – After securing $2-million through a share placement earlier this year, in conjunction with additional funding mechanisms, junior graphite developer Kibaran Resources announced on Tuesday that technical due diligence on its Tanzania-based Epanko graphite project is now complete, making Kibaran the first ASX-listed company to undergo banker’s due diligence for a graphite project in Africa.
Independent engineering firm SRK was appointed by KfW IPEX-Bank to conduct technical due diligence as part of the bank’s senior debt financing due diligence on Epanko.
Kibaran noted that the Independent Engineer’s Report (IER) was considered the key aspect of KfW IPEX-Bank’s rigorous approval process for an up to $40-million senior debt facility for the development of the project.
SRK had now submitted its final IER to KfW IPEX-Bank, which was accompanied by a detailed action plan to address the recommendations that had been identified.
Having now confirmed the bankable status of the Epanko feasibility study, prepared by GR Engineering, KfW IPEX-Bank was now reviewing the IER to prepare for the submission of the UFK Guarantee application.
The IER focused on the Epanko bankable feasibility study (BFS) and the associated financial model. It also involved detailed analysis of the BFS including the geology, mining, metallurgy, process test work, pilot plant work, capital and operating costs, pricing and the financial model. The review also assessed all project-related risks and included a site visit to Epanko at the end of January.
Kibaran said the IER would be forwarded to Nedbank, Africa’s largest investment bank, which indicated interest in providing senior project debt financing of up to $30-million, alongside KfW IPEX-Bank.
“We are gratified with the calibre of this banking syndicate [which] is in accord with our strategy of securing blue chip offtake and financing partners for the Epanko project,” commented Kibaran chairperson Bob Pett.