- Black Rock Mining (BKT) is set to receive a $9.6 million equity investment from South Korean steel-making company POSCO after ticking off a key government approval
- The Tanzanian Government Fair Competition Commission gave the green light to POSCO’s 15 per cent equity investment in Black Rock Mining, the final regulatory condition precedent to POSCO’s investment
- According to Black Rock, both parties intend to cement the investment on or before May 31 and continue to progress discussions regarding an offtake agreement
- Black Rock Managing Director and CEO John de Vries described the arrangement as “transformative” for the company
- Black Rock Mining shares are up 3.57 per cent following the announcement, trading at 14.5 cents
Black Rock Mining (BKT) is set to receive a $9.6 million equity investment from South Korean steel-making company POSCO after ticking off a key government approval.
The Tanzanian Government Fair Competition Commission gave the green light to POSCO’s 15 per cent equity investment in Black Rock Mining, which is said to represent the final regulatory condition precedent to POSCO’s investment.
The commission notified Black Rock that there were no objections to the acquisition of a 15 per cent interest by POSCO as part of a strategic alliance to develop the Mahenge Graphite Mine in Tanzania.
Further to this, Black Rock has received shareholder approval for the placement of shares to POSCO following a general meeting held in April.
According to Black Rock, both parties intend to cement the investment on or before May 31 and continue to progress discussions regarding an offtake agreement.
The funds are expected to fuel engineering work and the final design of the Mahenge project, a pilot scale test, third party technical due diligence and general project development costs.
Black Rock Managing Director and CEO John de Vries said the company is entering a transformative phase.
“Our companies are aligned and working together to achieve the common goal of supplying world class premium graphite from Black Rock’s Mahenge Graphite
Mine,” he commented.
“With the strategic partnership with POSCO in place, we are now able to focus on pre-construction activities and progressing customer engagement,” he concluded.
Black Rock Mining shares are up 3.57 per cent following the announcement, trading at 14.5 cents at 1:57 pm AEST.