13/06/2018 - 15:10

Kibaran signs on GR Engineering

13/06/2018 - 15:10

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Kibaran Resources has entered into a non-binding letter of intent with GR Engineering Services to negotiate an early works agreement and an engineering and procurement contract for the company’s Epanko graphite project in Tanzania.

The project has a capital cost of $US89 million.

Kibaran Resources has entered into a non-binding letter of intent with GR Engineering Services to negotiate an early works agreement and an engineering and procurement contract for the company’s Epanko graphite project in Tanzania.

Under the letter of intent, an early works agreement would provide for GR to undertake detailed engineering design works and early procurement activities.

Kibaran may elect to pay for up to 30 per cent of the early works via the issue of shares to GR.

Commencement of the EPC contract is subject to finalising the Epanko debt financing program, a final investment decision by Kibaran, and a number of regulatory approvals.

 “Kibaran is very pleased to partner with GR Engineering in the planned construction of this high quality, scalable and long-life graphite project with high value multiple downstream processing opportunities,” Kibaran chairman Robert Pett said.

“The company is focused on the remaining regulatory arrangements with the government for the Epanko development so as to secure lender approvals in relation to the debt financing package.”

A bankable feasibility study has forecast a capital expenditure of about $US89 million ($118 million) for the project.

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