Kibaran Resources (ASX:KNL) has raised $2 million at $0.15 each to progress the due diligence process for financing the development of the Epanko Graphite Project in Tanzania.
KfW IPEX-Bank, the development funding agency of the German Government, was undertaking due diligence on providing a US$40 million in debt funding facility for Epanko which included a review of the project’s feasibility study.
The bankable feasibility study on Epanko revealed the project had an estimated capital cost of US$77.5 million with a pre-tax net present value of US$197.4 million and a payback period of 2.7 years, based on production of 40,000 tonnes of flake graphite concentrate.
The capital cost of developing Epanko was to partly be sourced from KfW IPEX-Bank with US$40 million and augmented by African resources financier Nedbank which has given Kibaran an expression of interest to provide the final US$30 million debt facility.
KfW, Nedbank and SRK undertook a site visit at the end of January as part of the due diligence process.
It is a fast track to production of nine months once debt and equity financing is in place.
Kibaran has signed a binding long-term offtake agreement with Germany's ThyssenKrupp for 20,000 tonnes of graphite concentrate a year and recently announced a Memorandum of Understanding with Sojitz Corporation, one of Japan’s largest trading conglomerates.
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