Tanzanian graphite developer Black Rock Mining Limited (ASX:BKT) has received firm commitments to raise A$25m in a strongly supported Placement to new and existing institutional and sophisticated investors.
Funds will be used to strengthen Black Rock’s balance sheet, advancing the development of the Mahenge Graphite Mine, including early works programme and the purchase of long lead items, and for general and corporate purposes.
Shaw and Partners Limited and Aitken Mount Capital Partners acted as Joint Lead Managers to the Placement, who were also supported by Petra Capital, Blue Ocean Equities and PAC Partners.
“The company is pleased to strengthen the balance sheet ahead of development of the Mahenge Graphite Mine,” CEO, John de Vries, said.
“We are also pleased by the level of interest from existing and new institutional investment groups as the criticality of graphite in the EV supply chain becomes more apparent.
“We have a unique opportunity to bring online one of the largest Graphite Resources globally which is underpinned by its strategic location, a proven team, and now with a strong balance sheet to execute toward construction this year.”
About Mahenge
The Mahenge Graphite project has a JORC compliant Mineral Resource Estimate of 213m tonnes at 7.8% TGC. It also has Ore Reserves of 70m tonnes at 8.5% TGC. The Ore Reserves support a mine life of up to 350k tonnes of graphite per annum for a reserve life of 16 years.
In October 2018, the company released a Definitive Feasibility Study (DFS) for the Project, which was based on strong customer demand. This was enhanced in July 2019 and demonstrates exceptional financial metrics including:
• Low Capex: Lowest peak capital expenditure of US$116M for phase one;
• High Margin: AISC margin of 63.1%;
• Low Technical Risk: Substantial pilot plant operations run of 110 tonnes; and
• Superior Economics: IRR of 44.8% with NPV10 of US$1.16bn (A$1.65bn)
Black Rock has obtained all Environmental approvals, Mining Licences and its Resettlement Action Plan with clear title to the eDFS project area.
In June 2020, the company announced a Strategic Alliance with POSCO Group for the development of the Mahenge Graphite Mine. This included an equity investment of US$7.5M, signed in February 2021, followed by an offtake agreement, with a US$10M prepayment facility. Black Rock has also allocated planned production through Pricing Framework Agreements with five other offtake customers.
In December 2021, Black Rock signed a Framework Agreement with the Government of Tanzania confirming their 16% Free Carried Interest shareholding, and commitment to jointly develop the world-class Mahenge Graphite Mine.
The company is construction-ready subject to financing.
For further information please visit: https://blackrockmining.com.au/
