Kibaran Resources Limited: Off-take Agreement with ThyssenKrupp
Off-take Agreement with ThyssenKrupp
Kibaran Resources Ltd. (ASX: KNL) ("Kibaran" or the "Company)" is pleased to announce it has executed an off-take agreement with ThyssenKrupp Metallurgical Products GmbH, a part of the Materials Services business area of ThyssenKrupp group, a diversified industrial corporation based in Germany, for a long-term commercial agreement for the sale of Kibaran's natural flake graphite products.
Key Highlights:
* Exclusive long-term commercial agreement between the parties for the sale of a minimum 20,000 tonnes per annum (tpa) of refractory grade natural flake graphite in Europe, Turkey, Russia, Ukraine and Korea
* The term of the agreement is 10 years with a 5 year option
The agreement with ThyssenKrupp Metallurgical Products GmbH provides sales for 20,000 tpa from the Company's Epanko Graphite Project ("Epanko") which will account for 50% of Kibaran's planned 40,000 tpa graphite production from Epanko. In conjunction with existing agreements, 75% of the planned graphite production at Epanko is now supported by binding offtake and sales agreements.
ThyssenKrupp Metallurgical Products GmbH, one of the world's leading commodity trading companies, is part of the Materials Services business area of the global ThyssenKrupp corporate group. ThyssenKrupp AG is a major diversified industrial group headquartered in Germany with over 155,000 employees in nearly 80 countries and generated sales of around EUR41 billion in fiscal year 2013/2014.
Kai-Norman Knötsch, Chairman of the Management Board of ThyssenKrupp Metallurgical Products commented "Graphite is an extremely good fit within our Mineral Unit portfolio. The collaboration with Kibaran Resources Ltd. will enable us to further expand our activities in the refractory industry in Europe, Russia and Korea."
Kibaran Managing Director, Mr Andrew Spinks said, "The signing of the agreement involving the sale of Kibaran's graphite products is a milestone event in Kibaran developing Epanko and becoming a graphite producer. This is the Company's second off-take agreement and we are in continuing discussions with other sophisticated, targeted customers worldwide."
"We are extremely pleased to formalise our relationship with ThyssenKrupp given ThyssenKrupp's expertise, scale and international business standing. We are also pleased that ThyssenKrupp is assisting Kibaran with securing project funding which will be a key component of our overall project financing plan following the positive results from Epanko's recently completed Bankable Feasibility Study."
For further information, please contact:
Managing Director CFO/
Andrew Spinks
Company Secretary
Robert Hodby
A press release from ThyssenKrupp Metallurgical Products is attached to this announcement
