PERTH (miningweekly.com) – Graphite developer Black Rock Mining has completed a share placement to raise A$2-million.
The company placed more than 40.8-million shares, at a price of 4.9c each, under its existing placement capacity, raising funds for its due diligence-related costs associated with a strategic alliance and development agreement with POSCO, as well as its ongoing negotiations with the government of Tanzania.
“While we are very confident of our developing relationship with POSCO and completion of our agreement with the government of Tanzania, it is critical the company has adequate resources to complete these strategic objectives,” said MD and CEO John de Vries.
“Completing this small capital-raising ensures the company has the flexibility we need and the capacity to move to the next stage of project development. We are pleased to have attracted institutional funds as part of this placement.”
Black Rock and POSCO earlier this year inked a strategic alliance and development memorandum of understanding over the Mahenge graphite project, which could see POSCO invest an initial $10-million in either shares or convertible notes in Black Rock, with the funding going towards early work programmes and the provision of all weather site access at Mahenge.
A second investment, of an amount yet to be determined, would also be made by POSCO, with those funds going towards project construction.