Black Rock Mining wins funds for east African graphite play

• Black Rock Mining (ASX:BKT) provides an update on the debt progress for the Mahenge Graphite project, Tanzania
• The Industrial Development Corporation (IDC) of South Africa, approves a senior term loan of US$53.4 million (A$81.3 million)
• Along with the previously sanctioned senior loan of US$59.6 million (A$90.7 million) by The Development Bank of Southern Africa (DBSA), the IDC loan is set to form the US$113 million (A$172 million) Term Loan for Mahenge
• BKT last traded at 7cents, at 10:50am AEDT

Tanzanian graphite developer, Black Rock Mining (ASX:BKT) has provided an update on the debt progress for the Mahenge Graphite project.

The Industrial Development Corporation (IDC) of South Africa, has approved a senior term loan of US$53.4 million (A$81.3 million) expected to be part of the project’s debt facilities awaiting finalisation of agreements.

Along with the previously sanctioned senior loan of US$59.6 million (A$90.7 million) by The Development Bank of Southern Africa (DBSA), the IDC loan is set to form the US$113 million (A$172 million) Term Loan for Mahenge.

The loan details are subject to documentation and is expected to have a seven-year tenor, with the interest rate based on the Secured Overnight Financing Rate (SOFR).

Black Rock’s current focus is on formalising facility agreements and confirming the structure of the Mahenge project debt package.

Funding for the project’s production phase will be a blend of debt and equity. As of September 4, 2023, Black Rock entered into a Memorandum of Understanding (MOU) with strategic partner POSCO International Corporation (POSCO) for a potential equity investment of up to US$40 million.

POSCO Holdings is a leading South Korean steel conglomerate with a market capitalisation of more than US$24 billion, it holds a 60% stake in POSCO Future M Co, a prominent producer of cathodes and anodes.

Final approvals for this investment are expected shortly, with the company aiming to begin production from Module 1 in 2026.

BKT shares are up 13 per cent, last traded at 7cents, at 10:50am AEDT.