PERTH (miningweekly.com) – Graphite developer Black Rock Mining will raise A$25-million in a share placement to institutional and professional investors, to advance the development of its Mahenge project, in Tanzania.
The ASX-listed company on Friday announced that it had received firm commitments for the placement of more than 104.1-million shares, at a price of 24c each. The shares will be issued under the company’s existing placement capacity.
“The company is pleased to strengthen the balance sheet ahead of development of the Mahenge graphite mine. 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,” said CEO John de Vries.
“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.”
Black Rock in February reported a 25% increase in the measured resource at Mahenge, where the mineral resource is estimated at 213.1-million tonnes, at 7.8% total graphitic carbon, with the measured resource making up 31.8-million tonnes, and the indicated resource estimated at 84.6-million tonnes.
A 2019 definitive feasibility study estimated that Mahenge could produce 340 000 t/y of graphite during Stage 1 operations, for a capital investment of $116-million.