Richland Resources in MoU for potential tie-up for graphite production

5th Feb 2014 09:04

AIM-listed gem stone producer Richland Resources has signed a non-binding memorandum of understanding (MoU) with Kibaran Resources for the consolidation and development of both companies' graphite assets located in northern Tanzania.Forming a joint venture, the two will potentially consolidate Richland's Arusha Graphite Project with Kibaran's Merelani-Arusha Graphite Projectin with the intention of realising medium-term graphite production from both assets.Under the MoU, Kibaran is undertaking due diligence over a 90-day exclusivity period.Richland's Chief Executive Officer, Bernard Olivier, said: "Our team in Tanzania led by Ami Mpungwe, the Chairman of TanzaniteOne Mining, are looking forward to working with Kibaran with a view to commercialising the graphite potential of the Merelani mine for the benefit of [our subsidiary] TanzaniteOne Mining and [Tanzanian state mining company] Stamico."NR