Join our daily newsletter At The Bell to receive exclusive market insights
- Tanzanian graphite developer Black Rock Mining (BKT) has successfully completed a $2 million placement
- More than 40 million shares will now be issued to sophisticated investors, institutional investors, and existing shareholders at 4.9 cents
- Black Rock will use the funds to progress due diligence costs associated with the Strategic Alliance and Development agreement with POSCO Group
- The money will also be used to support continuing discussions with the Government of Tanzania
- Shares in Black Rock are steady and have been trading for 5.8 cents since September 30
Black Rock Mining (BKT) has successfully completed a $2 million placement.
The company entered back-to-back trading halts last week but did not disclose how much it would be raising or what it would be using the funds for.
All up, 40,816,327 shares will be issued to sophisticated investors, institutional investors, and existing shareholders at 4.9 cents.
This price represents an 11.6 per cent discount to Black Rock’s 14-day volume weighted average price.
Black Rock will use the funds to progress due diligence costs associated with the Strategic Alliance and Development agreement with POSCO Group, and to support continuing discussions with the Government of Tanzania.
“While we are very confidence 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,” CEO and Managing Director John de Vries said.
“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,” he added.
Shares in Black Rock are steady and have been trading for 5.8 cents since September 30.
