A member of a large banking Group, DFI intends to offer a senior loan of up to €20m with at least 6.5 years tenure.

DFI also showed interest in acting as arranger for the balance of the project debt, Kibaran said.

The expression of interest is conditional on commercial, legal, ecological, social and other aspects of the Project, including the feasibility study and environmental certificate.

Epanko project is said to have signed a binding offtake agreement and an LOI, which will support 50% of the planned 40,000 tons a year graphite production.

Kibaran expects to begin operations at Epanko in 2016.

Kibaran executive director Andrew Spinks said: "The debt financing EOI from DFI is a major step forward for the company, which has now firmly entered the development stage of the Epanko Graphite Project.

"The EOI provides further confidence to graphite market participants that Epanko will commence production in the near-term, and advance Kibaran’s ongoing discussions with a number of potential offtake customers."