Black Rock taps investors for $10m

Aspiring junior Black Rock Mining has announced it will raise $10 million in order to finalise preparations at its Mahenge graphite project in Tanzania, prior to its final investment decision release.

Under the placement, the John de Vries-led company will issue approximately 154 million shares at an offer price of 6.5 cents per share, with all placement shares expected to be allocated by April 4.

"We have several key de-risking milestones due near term and this $10 million placement should provide the company with sufficient cash reserves to complete loan and contract documentation ahead of FID - as well as working towards consummating a deal in the partner process in which we are aiming to sell a stake in the project at a premium as a less dilutive pathway to cashflow," Mr de Vries said.

"With all our key approvals now in place for US$153 million in debt facilities for Mahenge, we are also expecting to receive confirmation of (strategic alliance partner) POSCO’s approvals near term for its equity investment in Black Rock of up to US$40 million.”

The West Perth-based company has remained committed to Mahenge, of which it has an 84 per cent stake in, for several years.

Back in 2019, it released a definitive feasibility study for the site, located 300km south-west of the capital Dar es Salaam, and ensured all relevant approvals and licences had been secured.

A year later, it also secured a deal with South Korea-based POSCO, a major steel manufacturing company, which included both equity investment and offtake agreement components.

During its recent quarterly update to the market, Black Rock said it had $5.2 million cash in the till up to December 31 2023. 

Black Rock shares were down 16 per cent as of 10.09am AWST, trading at 6.9 cents per share.