(Ecofin Agency) - Australian Kibaran Ressources, graphite and nickel producer, raised $2 million to finalize financing of its Epanko graphite project in Tanzania.

As an additional funding mechanism, Investors would receive one free attaching option for every two shares subscribed. The collected funds will mostly be used to complete the due diligence process on Epanko. This process was launched by KfW IPEX-Bank, the German government-owned development bank, and independent engineering firm SRK.

Capital cost of the project has been estimated at $77.5 million, of which $40 million were to be provided by KfW. South African Nedbank proposed to grant a loan of $30 million to finance the project.

Production at the Epanko mine has been estimated at 40 million tons of natural flake graphite concentrate, generating yearly earnings before interest, taxes, depreciation and amortization of $33.6 million.

Epanko is an old graphite project in the South East of Tanzania. Exploration at the mine resulted in the identification of excellent quality graphite. Kibaran Resources holds 100% of the project.