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Black Rock confirms approvals now in place for US$153m in loan facilities from DBSA, IDC and CRDB, completing debt funding for Mahenge

Black Rock Mining ASX:BKT 3 mins read

HIGHLIGHTS

  • As announced previously, Black Rock has secured the key approvals for the US$113m Term Loan for Mahenge, which, subject to documentation, is expected to comprise:
    – US$59.6m from The Development Bank of Southern Africa (DBSA); and
    – US$53.4m from the Industrial Development Corporation of South Africa (IDC)

  • Black Rock has also secured the key approvals for US$40m in additional debt facilities from Tanzanian lender CRDB Bank (CRDB). Subject to documentation, the ancillary debt facilities are expected to comprise:
    – US$20m Working Capital Facility; and
    – US$20m Cost Overrun Facility

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Tanzanian graphite developer Black Rock Mining Limited (ASX: BKT) (Black Rock, BKT or the Company) is pleased to confirm it now has the key approvals in place for the US$153m in debt facilities required to develop the Mahenge Graphite Project (Mahenge or the Project).

The Company has received the key approvals for US$40m in facilities from Tanzanian lender CRDB, comprising a US$20m working capital facility and a US$20m cost overrun facility. Several other Tanzanian lenders have also expressed interest in participating in these facilities but are yet to receive credit approval and discussions are ongoing.

As announced on 15 March 2024, the IDC has approved a senior term loan of US$53.4m. The IDC loan, together with the US$59.6m senior loan approved previously by DBSA (announced on 2 November 2023), are expected to form the US$113m Term Loan for Mahenge. The loan terms remain subject to documentation of final agreements, but the loan tenor is expected to be seven years and the interest rate will be based on the Secured Overnight Financing Rate (SOFR) plus a margin.

Working with its debt finance advisor, ICA Partners, Black Rock has begun the process to document full form facility agreements confirming the final structure of the Mahenge project debt package. Such facilities are expected to contain terms and conditions usual for facilities of this type, but there is no guarantee of the conditions potential lenders may seek to impose, or that facility agreements will ultimately be entered into.

Ultimately, funding for the Project to reach production will require both debt and equity. As announced on 4 September 2023, Black Rock has signed an MOU with its Strategic Alliance Partner, POSCO International Corporation (POSCO) for a potential cornerstone equity position in Black Rock of up to US$40m and final approvals for this investment are expected near term. The Company is targeting first production from Module 1 in 2026.

 

This ASX release was authorised on behalf of the Black Rock Board by:  John de Vries, Managing Director & CEO

For more information:

Steuart McIntyre
GM Corporate Development
Black Rock Mining
+61 413 555 609
sm@blackrockmining.com.au

Elvis Jurcevic
Investor Relations
IRX Advisors
+61 408 268 271
ej@blackrockmining.com.au

 


About us:

About The Development Bank of Southern Africa (DBSA)
The Development Bank of Southern Africa is one of the leading African Development Finance Institutions, wholly owned by the Government of South Africa. The DBSA has a mandate to accelerate sustainable socio-economic development in South Africa, the Southern African Development Community (SADC) and the wider Sub-Saharan Africa by driving financial and non-financial investments in the social and economic infrastructure sectors.

About The Industrial Development Corporation of South Africa (IDC)
The Industrial Development Corporation of South Africa is a state-owned institution that provides financial support to promote economic growth and development in South Africa. IDC funds viable businesses to enhance industrial capacity and contribute to the economic growth of South Africa and the African continent. IDC emphasizes on labour-intensive industrialization, whether it is created directly through its funding of companies or by enabling downstream activities. IDC supports businesses to drive key development outcomes that ultimately lead to equitable economic growth, creating and sustaining jobs.

About CRDB Bank (CRDB)
CRDB Bank Plc is a commercial bank in Tanzania established in 1996. It is licensed by the Bank of Tanzania, the central bank and national banking regulator and was listed on the Dar es Salaam Stock Exchange in June 2009. CRDB Bank is also the largest commercial bank in Tanzania.

About POSCO
POSCO Holdings Inc is a large South Korean steel conglomerate with a market capitalisation of over US$24bn with a large and growing battery materials business. POSCO Holdings Inc’s 60%-owned battery business is called POSCO Future M Co., Ltd (previously known as POSCO Chemical). POSCO Future M Co., Ltd produces both cathodes and anodes and in 2022 was the world’s largest anode producer outside China. POSCO Future M Co., Ltd plans to grow its anode business from 82ktpa in 2022 to 370ktpa by 2030. POSCO International Corporation is South Korea’s largest trading company, is 71%-owned by POSCO Holdings Inc and is responsible for securing raw materials for the group.

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