Kibaran raises funds for graphite project

Graphite hopeful Kibaran Resources has received firm commitments for a $10.9 million capital raising to fund development work at its Epanko project in Tanzania.

Kibaran will raise the funds through the placement of ordinary shares at a price of 23 cents each, representing a 14.8 per cent discount to its last trading price.

Managing director Andrew Spinks said the raising would allow the company to progress pre-development work at the Epanko graphite project.

“This will enable us to move quickly into the detailed construction phase of the project when the project funding is completed,” he said.

“The raising will also allow us to press ahead rapidly with studies on expanding the plant to capitalise on growing demand from the lithium battery market and the feasibility study on producing battery-grade graphite.

“This means we will be in a position to increase production and add further value to our product much sooner than would otherwise be the case.”

Euroz Securities acted as bookrunner to the placement, while Argonaut and Taylor Collison acted as joint lead managers.

Kibaran shares closed 5.5 per cent lower to 25.5 cents each.