Tanzanian graphite developer Black Rock Mining on Wednesday announced a well-supported A$0.065-a-share placement that raised A$10-million.
Proceeds would be used for final Mahenge preparations ahead of the final investment decision (FID).
“We have several key derisking milestones due near term and this A$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 cash flow,” said CEO John de Vries.
Earlier this month, the company announced that key approvals were in place for $153-million in debt facilities with the Development Bank of Southern Africa, Industrial Development Corporation and CRDB for the mine.
In addition, Black Rock is expecting to shortly receive confirmation of Posco’s approvals for its equity investment of up to $40-million.
Mahenge has a resource of more than 200-million tonnes and is said to be the world’s second-biggest graphite reserve.
Black Rock's share price fell 17% on Wednesday, trading at A$0.068 apiece by late afternoon in Sydney.