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Kibaran up on offtake agreement

UPDATE 3pm: Shares in Kibaran Resources surged after the company signed a graphite offtake agreement with a European graphite trader.

The non-binding memorandum of understanding covers 10,000 tonnes of flake graphite concentrate a year for at least 10 years from Kibaran's Epanko deposit in Tanzania.

Kibaran, formerly known as Kagera Nickel, described the agreement as a significant independent endorsement of the quality and commercial appeal of the large flake graphite material identified at Epanko.

"Importantly, it de-risks the path to development and commercialisation of the project, and the longevity of the agreement supports a strong long-term outlook for natural graphite demand - particularly for the large flake type," the company said in a statement.

"Both parties are now in the process of drafting a binding off-take agreement."

Epanko hosts a maiden inferred resource estimate of 14.9 million tonnes at 10.5 per cent total graphitic carbon, for 1.56 million tonnes of contained graphite.

Kibaran shares closed up 2.1 cents, or 26.58 per cent, at 10 cents.