Kibaran Resources Ltd. said Dec. 20 that it signed a binding heads of agreement with ProGraphite GmbH to access technical and commercial knowledge of graphite processing for use in battery product applications.
Under the deal, the company will receive exclusive rights to the intellectual property, trademarks, licenses, technology and other assets developed for the downstream graphite processing business in exchange for a future royalty from commercial sales.
The royalty may be bought back from ProGraphite for A$2 million in cash or shares up to Dec. 31, 2020. The royalty rate will be finalized upon the signing of a definitive agreement, to be completed no later than May 1, 2018.
The agreement followed a positive feasibility study for graphite processing at the Epanko project in Tanzania, in which Kibaran decided to construct a pilot plant in Germany to produce battery-grade graphite.
Meanwhile, the company filed a provisional patent application for its eco-friendly battery graphite purification process.