- EcoGraf (EGR) is one step closer to securing US$60 million (around A$77 million) under its KfW IPEX-Bank debt financing proposal
- The parties have been in discussions with the Tanzanian Government and have developed a debt financing structure that fully complies with Tanzania’s new mineral legislation
- The financing will allow EcoGraf to develop the Epanko graphite operation, located 370 kilometres from the city of Dar es Salaam
- Notably, finance modelling has indicated that, over time, economic benefits of over US$3 billion (around A$3.8 billion) will accrue to Tanzania
- On the market this morning, EcoGraf is up 8.73 per cent and trading at 68.5 cents per share
EcoGraf (EGR) is one step closer to achieving Tanzanian Government approval for its KfW IPEX-Bank Epanko Graphite Mine debt financing proposal, worth US$60 million (around A$77 million).
The KfW IPEX-Bank is a branch of Kfw, a development bank in Germany and one of the world’s largest development financiers.
EcoGraf and KfW have been in discussions with the Tanzanian Ministry of Minerals, Mining Commission, Ministry of Finance and the Bank of Tanzania.
From this, the parties developed a debt financing structure that fully complies with Tanzania’s new mineral legislation relating to banking arrangements.
The financing will allow EcoGraf to build the high-quality Epanko flake graphite operation.
Next steps include completing due diligence, preparing loan documents and receiving formal approvals from the German and Tanzania Governments.
Epanko Graphite Mine
Epanko will sit around 370 kilometres from the city of Dar es Salaam.
Over the last seven years, EcoGraf has invested over US$20 million (nearly A$26 million) to prepare Epanko for construction.
This work includes completing the bankable feasibility study for an initial 60,000 tonne per year operation, environmental approval, receiving mining licence and sale contracts for exporting the graphite products.
Epanko is forecasted to expand over the time to meet the growing market demand for battery graphite and is expected to operate for 40 to 50 years.
Notably, finance modelling has indicated that, over time, economic benefits of over US$3 billion (around A$3.8 billion) will accrue to Tanzania. Over 95 per cent of the 300 permanent staff will be Tanzanian.
On the market this morning, EcoGraf is up 8.73 per cent and trading at 68.5 cents per share at 10:48 am AEDT.