Mahenge graphite project developers Black Rock Mining is working on raising A$4.75-million to fund the project’s definitive feasibility study.
According to the company, an initial A$4.2-million is to be raised through the placement of 70-million new fully paid ordinary shares, at 6c each to institutional and sophisticated investors.
The placement will be made in a single tranche under the company’s current placement capacity.
Furthermore, the company’s directors and advisers will apply for shareholder approval to subscribe for a further nine-million shares, to raise an additional A$540 000, on the same terms as the placement.
John de Vries, Black Rock Chief Executive Officer said the completion of the placement was a significant step in the company’s transition from explorer to developer, and ultimately to producer.
“The strong support validates our project that combines super low capital costs, high margins and scale, which we believe makes our Mahenge graphite the best undeveloped graphite project globally.”
“Being fully funded to complete the definitive feasibility study allows us to continue to de-risk the project, develop our markets and people, and progress to a construction decision.”
A previously completed prefeasibility study estimated that the project could produce some 167 000 t/y of high-purity graphite over a mine life of 32 years.
The project will be developed in two stages, with Stage 1 consisting of a processing plant and infrastructure with a design capacity of one-million tonnes a year, to produce some 83 000 t/y of graphite in concentrate over the first two years of production.