ASX-listed emerging graphite and battery market supplier Kibaran Resources has made progress on clinching senior debt financing negotiations with two major finance houses aimed at establishing the company’s initial US$77 million Epanko start-up graphite mining and processing operation in Tanzania.
The company reported on Wednesday that it had received a summary of indicative terms and conditions from German bank KfW IPEX in support of Kibaran’s Epanko graphite mining aspirations, following the announcement late last year that the project had secured the “in-principle eligibility for cover” of the Untied Loan Guarantee Scheme from the Federal Republic of Germany for up to $40m.
In addition the development of Epanko has attracted in the opening weeks of calendar 2016, further support following receipt of an expression of interest to potentially fund up to a total of $30 million of Epanko’s mine capex from South African-based global resources lender Nedbank, via its Corporate and Investment Banking division.
“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 projects will be a major supply chain to the European markets led by Germany,” says Kibaran Managing Director Andrew Spinks.
“Kibaran remains focused and on track to be a major long-term, stable supply alternative to existing graphite supply globally and is progressing discussions for additional strategic alliances and agreements,” he added.