17/04/2015 - 13:39

Kibaran to raise $5m for Epanko

17/04/2015 - 13:39

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Kibaran Resources has kicked off a $5.1 million capital raising to fund ongoing work on its flagship Epanko graphite project in Africa.

Kibaran to raise $5m for Epanko
Kibaran chief executive Andrew Spinks.

Kibaran Resources has kicked off a $5.1 million capital raising to fund ongoing work on its flagship Epanko graphite project in Africa.

The raising comprises a $4.1 million placement of 24.4 million shares, at an issue price of 17 cents each, to existing and new sophisticated and institutional shareholders, and a $1 million share purchase plan that will be offered to existing shareholders.

Kibaran said the placement was heavily oversubscribed, with the funds raised to be used to complete a bankable feasibility study at Epanko, order long lead items and provide working capital through to a decision to mine.

Executive director Andrew Spinks said the demand for participation in the placement highlighted investor interest remained strong for quality graphite companies.

“Whilst we are pleased with the new institutional and sophisticated investor support, the share purchase plan gives all existing shareholders the opportunity to take up further shares at the same price as the placement and we look forward to their ongoing support,” Mr Spinks said.

Kibaran expects settlement of the placement around April 24, while the share purchase plan offer will close on May 8.

Argonaut acted as lead manager to the raising.

Kibaran recently received an offer from an unnamed institution to co-finance its Epanko project with a loan of up to $28 million.

Kibaran shares were 2.5 per cent lower to 19.5 cents each at 1:30pm.

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