AMN - TANZANIA: Chilalo technical due diligence completed

Graphex Mining has completed all technical due diligence on the Chilalo graphite project in Tanzania. Negotiation of commercial terms with the project partners has been ongoing and broad agreement has already been reached on several key aspects.

Completion of all technical due diligence now allows for those negotiations to be further advanced.

Managing Director, Phil Hoskins says the completion of the technical due diligence was a key milestone in securing the commitment of the project partners to offtake and finance for Chilalo. “We have put considerable time and effort into due diligence and negotiations with the project partners on the basis they have substantial financial backing and a strategic interest in our product. Their interest has been demonstrated by an ongoing commitment of technical and financial resources to the assessment of Chilalo.”

The technical due diligence undertaken by the partners has been comprehensive, including completion of a feasibility study by the Suzhou Design and Research Institute for Non-Metallic Minerals. The feasibility study has used the results of the extensive product test work undertaken by the project partners over the last 18 months to ascertain the flow sheet capable of producing their desired product specifications. Detailed engineering has also refined the capital and operating cost estimates associated with graphite processing.

Graphex believes that the result of the technical due diligence provides a sound basis for advancing commercial negotiations for the complete package of offtake and finance. Hoskins further commented, “Given the importance of offtake to graphite projects, we were buoyed by the recent positive conclusion of product test work giving our product an effective seal of approval. As our targeted deal structure also involves financing, further technical due diligence has been necessary. It is pleasing that the results of this technical due diligence have been favourable and confirm the high quality of the Chilalo project. I look forward to progressing the negotiations of binding agreements.”

www.graphexmining.com.au

News courtesy of International Mining