Kibaran Resources Limited: ThyssenKrupp Group Subsidiary signs LOI with Kibaran for exclusive Offtake for 20,000 tpa of Graphite
| Kibaran Resources Ltd. ASX ANNOUNCEMENT 23 October 2014 |
ThyssenKrupp Group Subsidiary signs LOI with Kibaran for exclusive Offtake for 20,000 tpa of Graphite
Kibaran Resources Ltd. (ASX: KNL) (Kibaran or the Company) is pleased to announce it has executed a Letter of Intent (LOI) with German company ThyssenKrupp Metallurgical Products GmbH, a subsidiary of ThyssenKrupp, to develop an exclusive, long-term commercial agreement for the sale of Kibaran's natural flake graphite products. ThyssenKrupp is a major German integrated materials and technology company.
Key highlights:
- Development of an exclusive long-term commercial agreement between the parties for the sale of an initial and minimum 20,000 tpa of natural flake graphite products in Russia, Korea and the EU 27 (excluding Germany, but including Turkey);
- The term of the planned agreement is for 10 years
- ThyssenKrupp Metallurgical Products will endeavour to assist Kibaran to obtain debt or equity funding for development of the graphite projects.
The agreement will account for approximately 25% of Kibaran's planned 40,000 tonnes annual graphite production from its Epanko Project and support for the future development of Kibaran's Merelani project.
50% of the planned graphite production at Epanko is now supported by offtake and sales agreements, which places Kibaran in an enviable position as the company plans to fast-track the project through the feasibility study. Both parties are now working to advance the LOI to a formal commercial binding agreement.
ThyssenKrupp Metallurgical Products as one of the world's leading commodity trading companies is embedded in the global ThyssenKrupp corporate group. ThyssenKrupp, headquartered in Germany, is a major integrated materials and technology group and have around 160,000 employees in nearly 80 countries working with passion and expertise to develop technologies, products and services for sustainable progress. Their skills and commitment are the basis of their success. In fiscal year 2012/2013 ThyssenKrupp generated sales of around EUR39 billion.
Kibaran Executive Director, Mr Andrew Spinks said, "The signing of Kibaran's LOI involving the sale of Kibaran's graphite products is a further major milestone in the development of the Epanko deposit. This LOI is the second major sales agreement and discussions continue with other targeted customers worldwide. "
"We are extremely pleased to announce the beginning of our relationship with ThyssenKrupp Metallurgical Products. Given its scale and international business standing, ThyssenKrupp's involvement with Kibaran is a significant vote of confidence in our Company and our ability to deliver," he added.
"ThyssenKrupp Metallurgical Products has also agreed to work with Kibaran to pursue project funding which will be a key component of our overall Project Financing plan following completion of the Epanko deposit Feasibility Study. The signing of this LOI is further evidence that Kibaran is committed to delivering on our stated objective to be the being a major producer of graphite from Tanzania, East Africa."
"This is also a significant boost and benefit to the Tanzanian community, as it supports the development of graphite in Tanzania."
For further information, please contact:
Company Secretary
Robert Hodby
Kibaran Resources
P: + 61 8 6380 1003
Investor/Media Relations
Rebecca Lawson
M&C Partners
P: +61 2 8916 6124
E: rebecca.lawson@mcpartners.com.au