As per the MoU, Posco will arrange senior loans through its associations with financial institutions while Magnis will arrange subordinate debt and equity for the project.
Magnis will also be responsible for the overall co-ordination of funding for the project.
Magnis Resources chairman Frank Poullas said: "We have been impressed with our dealings with POSCO E&C over the past 3 months and we certainly welcome our partnership and the confidence it shares in the Nachu Graphite Project.
"The financial and sovereign stability afforded by the recent finalization of the mineral development agreement along with the recent capital raising has been the catalyst to the funding process."
Construction of the project is scheduled to commence following finalization of funding.
Posco E&C mining plant business group director Peter Lim said: "The quality of the graphite at Nachu is the best in the world and with the huge demand in the battery market, we are excited to be involved with Magnis."
The firms plan to start production from the project by the first quarter of 2017.
Magnis announced an extensive graphite discovery in March 2013 on its wholly owned Nachu tenement, which covers around 199km².
The tenement is situated west of the coastal city of Lindi and 200km by road from the port city of Mtwara.
Image: Technical due diligence team comprising members from POSCO E&C, Logiman and Magnis. Photo: courtesy of Magnis Resources Limited.
