Tanzanian graphite developer, Black Rock Mining, announced a successful A$10 million placement at A$0.065 per share on Wednesday.
The proceeds will be allocated to finalize preparations for the Mahenge project ahead of the final investment decision (FID).
CEO John de Vries expressed confidence in the company’s near-term milestones and outlined plans to utilize the placement funds for completing loan and contract documentation before FID.
Additionally, efforts are underway to secure a premium stake sale in the project as a less dilutive pathway to cash flow.
Earlier this month, Black Rock secured key approvals for $153 million in debt facilities from various financial institutions. Furthermore, confirmation of Posco’s equity investment of up to $40 million is expected shortly.
With a resource exceeding 200 million tonnes, Mahenge stands as the world’s second-largest graphite reserve.
Despite these developments, Black Rock’s share price experienced a 17% decline on Wednesday, trading at A$0.068 apiece by late afternoon in Sydney.
