Black Rock Mining (ASX:BKT) - CEO, John de Vries
CEO, John de Vries
Source: Black Rock Mining
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  • Black Rock Mining (BKT) has announced an entitlement offer to raise $1.65 million, fully underwritten by Lazarus Corporate Finance
  • The entitlement offer will be on the basis of one new share for every 16 shares held
  • The company’s largest shareholder Copulos Group has also committed to applying for its full entitlement
  • Additionally, for every share subscribed for one free attaching option will be issued, exercisable for 8.4 cents each within three years
  • The funds will be used to progress the strategic alliance with the POSCO Group for the development of the Mahenge Graphite Project in Tanzania
  • Black Rock Mining’s share price rose 12.2 per cent today to close at 5.5 cents per share

Black Rock Mining (BKT) has announced an entitlement offer to raise $1.65 million, fully underwritten by Lazarus Corporate Finance.

The entitlement offer will be on the basis of one new share for every 16 shares held. Additionally, for every share subscribed for one free attaching option will be issued, exercisable for 8.4 cents each within three years of being issued.

Following completion, a total of 39,308,982 new shares and 39,308,982 new option will be issued.

Importantly, the company’s largest shareholder Copulos Group, already holding a 22.3 per cent voting power, has committed to applying for its full entitlement.

The funds will be used to progress the recently announced strategic alliance and Memorandum of Understanding (MoU) with the POSCO Group for the development of the Mahenge Graphite Project in Tanzania.

Additionally, the company will continue to work towards reaching an accord with the Tanzanian government as Black Rock Managing Director and CEO John de Vries explained.

“Following on from our recent announcements relating to the formation of a Strategic Alliance & Development accord with POSCO and that the TIB Development Bank Ltd has commenced due diligence on the company’s Mahenge Graphite Project we are delighted to offer our loyal supporters the opportunity to participate in this entitlement offer,” John said.

“Whilst we are all frustrated that the development timeline has taken longer than anticipated, we believe the company has considerably de-risked the project risks and we are now focussed on progressing the negotiations with the Tanzanian Government on their 16 per cent Free Carry Interest,” he continued.

“As previously announced, we have reduced costs to allow the company to keep open the development option over our Mahenge Graphite Project with the funds raised from this offer to be focussed on progression of the POSCO relationship and the Tanzanian Free Carry Interest process and for general working capital,” John explained.

Black Rock Mining’s share price rose 12.2 per cent today to close at 5.5 cents per share.

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