Kibaran Resources Ltd (ASX:KNL), developer of the Epanko Graphite Project in Tanzania, has negotiated a commercial agreement with German-based ProGraphite GmbH.
ProGraphite specialises in the processing and evaluation of graphite materials.
Under the terms of the agreement, ProGraphite will grant Kibaran access to its technical and commercial knowledge relating to the processing of graphite for use in battery product applications.
This represents another step in the company’s strategy to extend its activities beyond the mine pit with a view to establishing itself as a prominent processor of graphite materials.
Agreement follows release of downstream processing feasibility study
This exclusive agreement follows Kibaran’s feasibility study on downstream processing of graphite from its Epanko Graphite Project in Tanzania.
The study found that production of battery grade graphite using Kibaran’s proprietary purification technology would be low-cost and environmentally friendly.
In light of these findings, Kibaran has decided to establish a pilot plant in Germany in early 2018.
Kibaran’s medium-term view is to expand the plant, enabling commercial scale production and supply of premium battery graphite to customers in Europe and Asia.
Collaboration between two parties is strategically important for Kibaran
The collaboration is strategically important for Kibaran as it provides the company with exclusive rights to ProGraphite’s intellectual property, trademarks, licences and technology.
From ProGraphite’s perspective, will be entitled to receive a future royalty from the commercial sales of the downstream processing business.
Kibaran may also elect to buyback the royalty at any time up to December 31, 2000 company for $2 million, payable in cash or shares.