Graphex Mining Ltd’s brings Tanzanian graphite to Spotlight

graphite texture

Graphex Mining Ltd (ASX:GPX) was created by a spin-off of IMX Resources’ (ASX:IXR) Chilalo Graphite Project in Tanzania with a strategy to fast-track development.

The project has a shallow, high-grade Mineral Resource of 9.2 million tonnes at 10.7% total graphitic content.

The prefeasibility study forecast that the project would generate a pre-tax net present value of US$200 million over life of mine by producing an average of 69,000 tonnes per annum of graphite concentrate.

The project has a defined Ore Reserve that supports 7.5 years out of the proposed 10 year mine life and will require capital of US$74 million to build. Following receipt of environmental approvals in March 2016, Graphex expects to receive its mining licence by the end of July 2016.

Graphex’s immediate focus is converting the existing offtake and finance memorandum of understanding into binding offtake and project financing which is expected to occur within months of listing.

China Gold Group Investment Co Ltd and China National Building Material Group (CNBM) are interested in securing offtake from Chilalo due to the high quality and highly expandable graphite it can produce.

Representatives of China Gold and CNBM conducted a site visit to Chilalo during June as part of their due diligence process.

Expandable graphite is a premium value-added product derived from flake graphite and is used in the electronics industry as well as in producing flame retardant building materials. Recent changes in Chinese building requirements are expected to considerably increase demand for expandable graphite.

With the recent IPO raising $7 million, the company is well funded to deliver on its strategy.

Source: Proactive Investors