Company Overview

Company Overview

About Graphex

Graphex Mining Limited is an Australian exploration and development company, focused on advancing the Chilalo Graphite Project located in south-east Tanzania. Chilalo is host to a high-grade mineral resource (with an Ore Reserve) and has demonstrated an ability to produce a premium graphite concentrate with a substantial portion of large and jumbo flake material. Chilalo graphite possesses outstanding expandability characteristics, making it ideally suited to the rapidly growing expandable graphite market.

Having signed a non-binding term sheet in May 2017 with a Chinese syndicate led by CN Docking Joint Investment and Development Co Ltd (a subsidiary of China National Building Materials Group), that sets out a number of the key terms for an equity joint venture, offtake and prospective financing for the Chilalo Graphite Project, Chilalo is ideally positioned for development.

Graphex has an experienced board and management team with specific skills and extensive experience in African based project development, exploration, mining and processing. Tanzania is a stable democracy, with a globally competitive tax and regulatory regime. The Company has a well-established presence in Tanzania through its long history of exploration at the Lindi region in south-east Tanzania.

Chilalo Graphite Project

  • Produces a high quality product
    • High % in large and jumbo flake categories
    • 95% TGC weighted average concentrate grade from basic flotation
    • Exceptional expandability – 1,500x (1,500 times) and excellent expandability rates achieved at low temperatures
  • With outstanding expandability results, focus is on the rapidly growing, high value expandable graphite market
  • End user focus has resulted in a strong Chinese strategic relationship with a Chinese syndicate led by CN Docking – a signed non-binding term sheet that covers project equity investment, offtake, and prospective debt finance was agreed in May 2017
  • Completion of formal legal documentation with the Chinese syndicate is targeted for the end of August 2017
  • Chilalo is technically sound with high margins, low capital intensity and attractive returns, results of a pre-feasibility study completed in November 2015 include:
    • Pre-tax NPV of US$200 million
    • Pre-tax IRR of 62%
    • Pre-tax payback period of 1 year and 7 months
    • Annual production: 69,000 tonnes of graphite concentrate
    • Pre-production capital cost of US$74 million
    • FOB operating costs of US$490 per tonne
    • Forecast basket price of $1,217 per tonne – attractive operating margin
  • High grade JORC Mineral Resource and Ore Reserve – February 2017:
    • Indicated and Inferred resources of 16.9 Mt grading 10.2% TGC for 1,722 kt of contained graphite
    • Total JORC Mineral Resource: Indicated and Inferred resources of 53.5 Mt grading 5.6% TGC for 2.9 Mt of contained graphite
    • Probable Ore Reserve of 4.7 Mt grading 11.0% TGC for 517 kt of contained graphite
  • Significant resource upside
    • Exploration target tonnage (100-350Mt @ 3-11% TGC)
    • High conductance EM targets located on the Chilalo Mining Licence area
  • Fully permitted for project development

Location of Graphex Tenements

02A. gfx001v2_Tanzania