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Monday, May 5, 2014

Explorers extend deal on Tanzania graphite project


 
Exploration activity at the Mahenge Graphite Project in Tanzania.PHOTO|FILE 
By The citizen Reporter
In Summary
At the Mahenge graphite project the drilling programme that commenced in March remains on schedule despite progress being hampered by heavy rainfall.


Hong Kong. Kibaran Resources, which is listed on the Australian Stock Exchange has signed a three-month extension to the existing memorandum of understanding to consolidate its Merelani-Arusha Graphite Project with the Richland Group’s graphite assets in Tanzania.
Kibaran has now largely completed its due diligence and is working with Richland to finalise the terms of the agreement.Both groups are keen to finalise the agreement to allow the restart of graphite production at Merelani.

At the Mahenge graphite project the drilling programme that commenced in March remains on schedule despite progress being hampered by heavy rainfall. The Environmental and Social Impact Assessment work, required for the Mining Licence application is ahead of schedule. The Environmental Consultant has completed the scoping study, which will be submitted to the Tanzanian National Environment Management Council soon for approval. The study could be approved by the end of May, allowing the next stage of field work to commence. Kibaran remains globally one of few listed companies with a sales partnership and binding offtake agreement for the graphite sale. In late December 2013, it signed a binding offtake agreement with a sophisticated European graphite trader.

The off-take agreement 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. Graphite is regarded as a critical material for future global industrial growth, destined for high technology applications including nuclear reactors and lithium-ion battery manufacturing. (Agencies)

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