![[Tanzania] Graphex Mining acquires 10 year license for Chilalo circa project](Mining Tanzania.jpg)
[Tanzania] Graphex Mining acquires 10 year license for Chilalo circa project
Australian mining company GRAPHEX Mining has receiving license for its circa- $74 million Chilalo project in Tanzania, with the granting of the licence an “important requirement” for gaining financing and offtake agreements.
The licence is for a period of 10 years, which means extensions will have to be applied-for in the future given feasibility work outlined a 10-year life-of-mine – not to mention Graphex’s contention that the Shimba resource to be mined represents 1km out of 54km of strike identified by geophysics.
“Securing the mining licence is a significant step towards our objective of commencing project development and commercial production at Chilalo. It further de-risks the project and confirms Chilalo’s position as one of the most advanced graphite projects of any company listed on the ASX,” said managing director Phil Hoskins.
He noted that the company continued to make progress with project partners regarding offtake and finance for the development of Chilalo and the receipt of the mining licence, combined with the expected near-term conclusion of their technical due diligence, which will allow the negotiations to move forward.
The prefeasibility study on the Chilalo project estimated that a capital injection of $74-million would be required to support an average yearly production of 69 000 t of graphite concentrate, over a ten-year mine life
Graphex owns Chilalo 100 per cent but has Chinese partners CNBN and China Gold said to be keen to purchase offtake and provided project finance.
Chilalo’s prime product is expandable graphite, used in various applications including graphite foil (the heat shield in electronic devices), and flame retardant building materials. Graphex started the December quarter with $A3.7 million cash.
