The licence is for a period of 10 years, which means extensions will have to be applied-for in the future given feasibility work outlined a 10-year life-of-mine – not to mention Graphex’s contention that the Shimba resource to be mined represents 1km out of 54km of strike identified by geophysics.

Graphex owns Chilalo 100% but has Chinese partners CNBN and China Gold said to be keen to purchase offtake and provided project finance.

Chilalo has been estimated to cost about $US74 million to build, with annual production of 69,000 tonnes of graphite modelled to generate average annual earnings of $47 million.

Chilalo’s prime product is expandable graphite, used in various applications including graphite foil (the heat shield in electronic devices), and flame retardant building materials.

Graphex started the December quarter with $A3.7 million cash.

Shares in the company were trading last week at 32c, capitalising Graphex at about $18 million.