- Black Rock Mining (ASX:BKT) provides an update on the debt process for its Mahenge graphite project in Tanzania
- It received approval from the DBSA for a loan of up to US$59.6 million, subject to legal documentation
- Several potential lenders, including Development Finance Institutions and Tanzanian commercial banks, are progressing through due diligence
- The debt funding will support module one and infrastructure, with first production aimed for 2025
- BKT shares last traded at 12 cents
Black Rock Mining (ASX:BKT) has provided an update on the debt process for its Mahenge graphite project in Tanzania.
The company has received approval from The Development Bank of Southern Africa (DBSA) for a loan of up to US$59.6 million.
Several potential lenders, including Development Finance Institutions and Tanzanian commercial banks, have progressed through due diligence, including site visits, and are working on preliminary term sheets.
The company anticipates that lender board approvals from multiple potential lenders will be communicated to Black Rock during the fourth quarter of 2023.
Once these approvals are received, Black Rock will proceed to negotiate and execute comprehensive facility agreements with the approved lenders and define the structure of the project’s financing package.
To finance the project and bring it to production, the company aims to secure up to 50 per cent of project financing through traditional project finance and anticipates an equity investment from POSCO.
The debt funding will support module one and infrastructure, with first production aimed for 2025.
BKT shares last traded at 12 cents.