Kibaran Resources Takes Step Forward in Debt Funding Process

Kibaran Resources Ltd. (ASX:KNL) announced that it’s received confirmation of “in-principle eligibility for cover” for its Epanko graphite project. The designation means that Kibaran has met the initial condition to receive a UFK guarantee from the German government in combination with financing from KfW IPEX-Bank, a German state-owned bank.
As quoted in the press release:

KfW is one of the world´s leading development banks. It’s subsidiary KfW IPEX-Bank has a strong track record in the mining sector, including in Africa. Kibaran through KfW IPEX-Bank and with the support of its off-take customers ThyssenKrupp AG and a European Trader, has been investigating the Company’s eligibility for an Untied Loan Guarantee – Garantie für Ungebundene Finanzkredite (‘UFK’). The Company is pleased to report that KfW has received confirmation of in-principle eligibility for cover for the project. The confirmation is based on ThyssenKrupp AG and its European trader supplying the German industry with graphite.

Andrew Spinks, managing director of Kibaran, commented:

We are very pleased to have successfully achieved the first major milestone in our debt funding process. Confirmation of the in-principle eligibility for cover under an Untied Loan Guarantee follows six months of negotiations and provides a level of certainty for the bank to provide debt funding for the develoment of Epanko. This is significant as it strengthens our strategic alliance with Germany, which is the world’s fourth largest economy and is the leader in the development of graphite in the industry, having developed spherical graphite for the battery market, renewables and other uses for emerging markets.

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