UPDATE 1.20pm: Shares in Kibaran Resources took off after the Tanzanian-focused graphite and nickel explorer announced it had signed a binding off-take agreement with a major European graphite trader.
Under the terms of the binding off-take agreement, the trader guarantees the purchase of 10,000 tonnes of graphite concentrate per year from Kibaran, for an initial five years with an option to renew for a further five years, on a market based pricing mechanism.
Kibaran said the off-take agreement represented a major milestone for the company with the significant de-risking of the development of its Epanko graphite deposit.
Epanko hosts an inferred mineral resources estimate of 14.9 million tonnes at 10.5 per cent total graphitic carbon for 1.56 million tonnes of contained graphite.
Kibaran executive director Andrew Spinks said the company was very pleased to be the first ASX-listed company to secure a binding off-take agreement for graphite sales, and the first company globally to sign a binding agreement for graphite sales in the sophisticated European market.
The agreement also entitles the European graphite trader to acquire five million Kibaran shares at a price of 10 cents a share, representing a 25 per cent premium to its last traded price on Friday.
Kibaran shares closed up six cents, or 85.71 per cent, at 13 cents after touching an intraday high of 20 cents.