Kibaran Resources Limited (ASX:KNL) is pleased to report that it has signed a new agreement with German KfW IPEX-Bank for debt funding of the Epanko Graphite Project.
The agreement reappoints KfW IPEX-Bank to arrange senior debt funding for the Epanko Graphite Project in Tanzania (“Epanko” or the “Project”) after a hiatus of 18 months, during which many discussions have been held with the Tanzanian Ministry of Minerals, Mining Commission and the Bank of Tanzania concerning the regulatory changes introduced in July 2017 that have impacted on mineral project debt financings in the country, and is a reflection of the improved investment outlook in Tanzania.
As recently reported (refer ASX announcement Tanzania and Germany to Forge Closer Economic Relationship on 26 March 2019) the mining investment climate in Tanzania continues to improve and there is increasing confidence among international banks that the remaining regulatory aspects impeding new mine financing arrangements will be satisfactorily resolved.
Epanko is development ready with the Company having invested over $35 million to date in order to prepare the Project for construction and operation, including:
- Completion of a bankable feasibility study;
- Exhaustive due diligence by KfW IPEX-Bank appointed Independent Technical Engineers SRK Consulting on all technical and financial aspects of the Project as well as social, environmental and safety aspects to IFC Performance Standards and World Bank Group Environmental, Health and Safety Guidelines;
- Sales and offtake agreements for graphite production in Germany with ThyssenKrupp and EGT and in Asia with Japanese group Sojitz Corporation; and
- Mining Licence and environmental approvals in place.