PERTH (miningweekly.com) – The Tanzanian government’s Fair Competition Commission (FCC) has approved Korean major POSCO’s $7.5-million investment into ASX-listed Black Rock Mining.
Black Rock on Wednesday said that it had been notified by the FFC that there were no objections to POSCO acquiring a 15% interest in the company as part of a strategic alliance for the development of the Mahenge graphite mine.
The FCC approval followed Australian Foreign Investment Review Board approval in March, as well as Black Rock shareholder approval in April, and paved the way for the completion of the transaction.
Under an agreement struck last year, POSCO would acquire a 15% interest in Black Rock by subscribing for more than 126-million shares in the Australian company, at an issue price of 8.2c each.
Black Rock will use the funds from the POSCO transaction to develop its Mahenge graphite project, in Tanzania, including conducting a commercial-scale test for ore processing to produce commercial scale customer samples, site works and early stage construction.
Black Rock MD and CEO John de Vries said on Wednesday that the companies were aligned and working together to achieve the common goal of supplying world class premium graphite from the Mahenge mine.
“We are entering a transformative phase for the company. With the strategic partnership with POSCO in place, we are now able to focus on pre-construction activities and progressing customer engagement.”