News: Bisan's partner makes new graphite discovery in Botswana

Bisan Limited (ASX:BSN) should trade higher after significant visual graphite mineralisation has been observed in the two drill holes completed at the Pencil Hill project in Botswana.

Bisan is considering an option to acquire an initial interest of 30% of Q-Pene, the owner of Pencil Hill for $2 million.

Intersections included 90 metres of visible graphite from 15 metres in hole one, and 86 metres of visible graphite from 35 metres in hole two.

The two diamond Holes were drilled 50 metres apart as part of Bisan’s due diligence program, and core samples have now been sent to an independent laboratory for analysis.

The prospecting licence covers 830 square kilometres with a potential strike length of 25 kilometres.

Further work is now planned along the identified Amphibolite to identify the full width and continuity of the graphitic zones.

Bisan will have the first right of refusal to acquire an additional 21% of Pencil Hill based on the terms above, although an independent valuation may be required.

When the independent lab results are at hand a decision will be made whether to proceed with the acquisition.

Bisan will have the first right of refusal to acquire up to an additional 21% of the equity Pencil Hill Pty Ltd based on the terms above with an independent valuation may be required, once the sum of $2 million has been expended.

In addition, Bisan currently holds 13.8% of the issued capital of P-Fuel Limited, an unlisted public company.

P-Fuel is developing technology to convert plastics into diesel fuel, and proposes to undertake an IPO under which Bisan shareholders will be given a priority allocation.

Bisan is lightly capitalised at $8 million, relative to several other graphite explorers.