Kibaran Exploring Financing Options for Epanko with German Bank

Kibaran Resources Ltd. (ASX:KNL) announced that it’s signed a formal mandate letter with Germany’s KfW IPEX-Bank regarding financing options for the construction of its US$77-million Tanzania-based Epanko graphite mine.
As quoted in the press release:

Kibaran is pleased to report the signing of the mandate letter with Germany’s KfW IPEX-Bank under which the Bank will provide advice and structuring support in relation to previously announced UFK cover and, subject to due diligence, consider an initial senior loan of up to US$40 million towards Epanko’s capex.
This is the second move by KfW IPEX-Bank in support of Kibaran’s Epanko graphite mine development plans and follows the announcement last month that the project had secured the “in-principle eligibility for cover” of the Untied Loan Guarantee Scheme (“UFK”) of the Federal Republic of Germany.

Andrew Spinks, managing director of Kibaran, commented:

“The mandate is a further step forward for Epanko and formally confirms KfW IPEX-Bank’s interest in participating in financing for the project after it received confirmation of the ‘in-principle eligibility for cover’ under the UFK Scheme early in September.
We do not wish to pre-empt the Bank’s current due diligence assessment over, if and how this project can be financed through to completion of mine construction. We are heartened, however, by the sentiments expressed by the Bank to Kibaran over recent weeks leading up to this agreement’s signing.
Our current discussions include KfW IPEX-Bank also assisting in arranging further debt financing arrangements to progress completion of Epanko mine development.
KfW is one of the world’s leading promotional banks and its subsidiary bank, KfW IPEX-Bank with whom we are negotiating, has a strong track record in the mining sector, including in Africa. This parallels Kibaran’s drive to establish our three Tanzanian graphite projects as an East African graphite ‘hub’ best positioned to service growing European market demand.

Click here to read the full Kibaran Resources Ltd. (ASX:KNL) press release.