Tanzanian graphite developer Black Rock Mining Limited (ASX: BKT) (Black Rock, BKT or the Company) is pleased to announce that is has signed a non-binding Memorandum of Understanding agreement (Agreement) with Strategic Alliance Partner, POSCO International Corporation (POSCO), in relation to the long-term fines offtake of graphite concentrate from Module 2 of the Mahenge Graphite Project (the Project or Mahenge).
- Non-binding MOU signed with Strategic Alliance Partner, POSCO comprising:
– POSCO to secure long-term fines offtake for Mahenge Module 2
– Subject to POSCO approval, POSCO to provide an additional equity investment in BKT of up to US$40m, or a stake of 19.99% in BKT (whichever is lower)
– Explore additional opportunities for POSCO and BKT to cooperate further to develop an Inflation Reduction Act compliant anode supply chain
- Assuming a binding agreement can be reached, the proceeds from POSCO’s investment in BKT would be applied to the construction of Mahenge Module 1.
Module 2 Fines Offtake MOU Agreement
The Agreement envisages the long-term supply of fines graphite from planned production of Mahenge Module 2 in exchange for an additional POSCO investment in BKT, subject to POSCO approval, of up to US$40m or an equity stake of 19.99% (whichever is lower). Negotiations are underway to secure a binding agreement.
The Agreement builds on the strategic partnership between Black Rock and POSCO which is working towards developing the Mahenge Graphite Project to provide a significant new source of natural graphite into a highly dependent global market driven by clean energy demand. Importantly, the Agreement also signals further de-risking of the Company’s funding strategy to develop Mahenge.
Commenting on the Agreement with POSCO on Module 2, Black Rock CEO, John de Vries, said:
“We are extremely pleased to be further deepening our relationship with POSCO and we believe today’s announcement represents a strong endorsement of the promising future of the Mahenge Graphite Project.
POSCO’s confirmed interest in Mahenge Module 2 also represents a major de-risking milestone for the Company, providing increased confidence for all of our stakeholders as well as improved visibility on funding and our pathway to production.”
Photos – The MOU Signing Ceremony in Dar es Salaam on 1 September 2023. Attendees from POSCO International, the Government of Tanzania, Black Rock Mining and Faru Graphite Corporation, the Tanzanian JV which holds the Mahenge Graphite Project (84% Black Rock Mining, 16% Govt of Tanzania