Black Rock Mining (ASX: $BKT) secures US$153m in loan facilities

Tanzanian graphite developer Black Rock Mining Limited (ASX: $BKT) has successfully secured the key approvals for US$153m in loan facilities from The Development Bank of Southern Africa (DBSA), the Industrial Development Corporation of South Africa (IDC), and CRDB Bank. The facilities are expected to comprise a US$113m Term Loan for the Mahenge Graphite Project, along with an additional US$40m in debt facilities. The company also received firm commitments for a A$10.0m placement to new and existing institutional and sophisticated investors, with A$2.9m cash at bank at 31 March 2024, excluding proceeds from the A$10m placement received subsequent to quarter end.

Executive Commentary on Loan Facilities and Funding

Funding for the Project to reach production will require both debt and equity. Black Rock has signed a memorandum of understanding (MOU) with its Strategic Alliance Partner, POSCO International Corporation (POSCO) for a potential cornerstone equity position in Black Rock of up to US$40m. The company is targeting first production from Module 1 in 2026 and is working on updating its project contracts which will need to be finalized in parallel with loan documentation. The company is also advancing other financing options, including potentially bringing in a partner at the project level as a less dilutive option than equity. The company is encouraged by the level of interest received to date and a significant number of interested parties have signed confidentiality agreements to assess potential investment.

Summary of Black Rock Mining's ASX Announcement

Black Rock Mining (ASX: $BKT) has secured the key approvals for US$153m in loan facilities from DBSA, IDC, and CRDB, marking a significant milestone in the development of the Mahenge Graphite Project. The company is construction-ready subject to financing and has received firm commitments for a A$10.0m placement to new and existing institutional and sophisticated investors. The company's ambitions include targeting first production from Module 1 in 2026 and exploring various financing options, including the potential involvement of a partner at the project level. The company is optimistic about the level of interest received from potential investors and is focused on finalizing the necessary agreements to advance the project.