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Kibaran Resources Completes $1.125M Placement For Epanko Graphite Project

Kibaran Resources (ASX:KNL) has completed a $1.125 million share placement at a price of $0.125 per share to sophisticated investors.

The company is the first ASX listed graphite company to sign an off-take agreement.

It is developing the Epanko Graphite Deposit within the Mahenge Graphite Project, the Merelani - Arusha Graphite Project, and Kagera Nickel Project, which are all located in Tanzania.

Funds raised will enable a drill program to upgrade the Epanko graphite resource at Mahenge; from Inferred to Indicated and further advance the metallurgical studies in order to determine optima grind size and concentrate.

The placees will receive one free attaching option for every two shares subscribed, exercisable at $0.20 and expire eighteen months from the date of issue.

Interestingly, Kibaran has flagged it is also evaluating "several potential opportunities focused on the consolidation of other graphite prospects in Tanzania".


Kibaran is looking to fast track the Epanko Graphite Deposit in Tanzania into production by 2015.

- Epanko has a major economic advantage over some projects as a high grade asset with an Inferred JORC resource of 14.9 million tonnes at 10.5% Total Graphitic Carbon.

- The resource hosts highly valued and sought large flake sized carbon with 73.8% greater than 106µm, 21.6% greater than 300µm, and with a low component of lesser valued fines at 26.2%.

- Current resource estimate covers only 20% of the known footprint of Epanko.

Intermine Engineering Consultants of Perth completed a Scoping Study that estimated a total CAPEX of $39 million to complete a mine and process plant capable of treating 200,000 tonnes per annum of raw graphite feedstock.

This included mining $2 million, process plant $24 million, infrastructure $4 million, EPCM (engineering, procurement and contract management) $5 million and contingency of $4 million.

Last year, Kibaran announced an offtake agreement with a European Graphite Trader. Kibaran signed a binding offtake agreement with the EGT, which significantly de-risks the development of the company's Tanzanian project.

The off-take agreement is to purchase 10,000 tonnes of flake graphite concentrate per year, over a 5 plus 5 year period, provides an independent endorsement of the quality and commercial appeal of graphite at the Epanko deposit.

The pricing of graphite sales is related to flake size, with key attributes of Epanko graphite its distribution and quality, including large and very large flake sizes.

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