04/07/2014 - 13:41

Kibaran raises $3.1m through placement

04/07/2014 - 13:41

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Graphite and nickel exploration company Kibaran Resources has raised $3.1 million through a share placement, just months after it completed a similar placement in February.

Kibaran raises $3.1m through placement

Graphite and nickel exploration company Kibaran Resources has raised $3.1 million through a share placement, just months after it completed a similar placement in February.

More than 23 million shares were issued at a price of 13.5 cents, making a total of over $4 million raised this year.

Kibaran plans to use the funds to continue exploration of its Tanzanian graphite holdings at its 100 per cent-owned Epanko project.

Executive director Andrew Spinks said demand for graphite was forecast to increase in the medium term.

“Analysts are expecting demand and prices of large and jumbo flake graphite to rise in the medium-term, due to increasing consumption of the commodity in various high-growth sectors including consumer electronics, batteries and thermal storage,” he said.

“The strong demand (for the placement) highlights that investor interest remains strong for quality resources and is recognition of Kibaran’s advanced technical progress ... and the exceptional investment value the company represents.” 

The company also said it was in negotiations for graphite rights at the Merelani mine with its joint venture partner the State Mining Company of Tanzania.

Richland Resources was also involved in the discussion.

At midday, Kibaran traded up by over 6 per cent at 16.5 cents.

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