PERTH (miningweekly.com) – Korean major POSCO has completed the acquisition of a 15% stake in ASX-listed Black Rock Mining.
Under an agreement struck last year, POSCO would invest $7.5-million in Black Rock by subscribing for more than 126-million shares in the Australian company, at an issue price of 8.2c each.
ASX-listed Black Rock received shareholder approval for the transaction at a general meeting held in April this year, with the deal also approved by the Australian Foreign Investment Review Board.
The Tanzanian government’s Fair Competition Commission also approved the transaction in May of this year.
Subject to POSCO maintaining a minimum 10% equity interest in Black Rock, the Korean company has the right to nominate a director to the Black Rock board.
Black Rock previously said that it would 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.