HIGHLIGHTS
- Black Rock has now secured the key approvals for the target 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)
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Tanzanian graphite developer Black Rock Mining Limited (ASX: BKT) (Black Rock, BKT or the Company) is pleased to provide an update on the debt process for the Mahenge Graphite Project (Mahenge or the Project). The IDC has approved a senior term loan of US$53.4m which is expected to form part of the Project debt facilities for Mahenge. The loan is subject to documentation of final agreements.
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, 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.
Black Rock will now seek to document full form facility agreements and confirm 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