JUNIOR explorer Kibaran Resources has signed a
non-binding memorandum of understanding (MoU) with Aim-listed Richland
Resources to consolidate its Merelani-Arusha graphite project, in Tanzania, with
other assets in the region.
Under the terms of the MoU, the two companies have
agreed to undertake due diligence and to work towards a legally binding
agreement to consolidate their respective graphite assets into a joint venture
(JV).
The assets would include TanzaniteOne Mining’s
graphite processing plant, which is wholly owned by Richland, and which was
closed in the late 1990s, owing to a change in focus to the production of
tanzanite.
The JV would provide Kibaran with a second source of
graphite in Tanzania, as well as a clear strategy to expand its future graphite
production.
Kibaran has a 90-day exclusive period to complete
due diligence studies.
“Following the recent milestone achievement of a
signed binding offtake agreement for Epanko graphite, we are pleased to be in
negotiations to progress the company’s Merelani-Arusha graphite project with
the Richland group,” said Kibaran executive director Andrew Spinks.
“This is in line with Kibaran’s primary objective of
becoming a significant, long-term producer of premium quality graphite.”
Kiraban’s Merelani-Arusha project consists of seven
tenements covering some 973.4 km2. The project is located 12 km east of
TanzaniteOne Mining’s Merelani tanzanite and graphite mine.
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