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Be the first with the news that moves the market- Black Rock Mining (BKT) gets firm commitments to raise $25 million through a placement
- The Tanzanian graphite developer will issue over 104 million shares to institutional and sophisticated investors priced at 24 cents per share
- Black Rock is using the money to strengthen its balance sheet and continue development work for its Mahenge graphite mine in Tanzania
- The company says it’s on track for construction to begin at the project in the September quarter
- BKT shares have been trading 14.6 per cent lower at 23.5 cents
Black Rock Mining (BKT) has received firm commitments for a placement to raise $25 million.
The Tanzanian graphite developer will issue roughly 104.2 million shares to institutional and sophisticated investors priced at 24 cents each.
The issue price marks a 12.7 per cent discount to the last closing price and a 13.8 per cent discount to the five-day volume-weighted average price.
Black Rock Mining plans to use the funds to strengthen its balance sheet and advance the Mahenge graphite mine with specific activities to include an early works program and purchasing long lead items.
The money will also be used for general working capital.
CEO John de Vries said the company was pleased to strengthen its financial position before further developing its wholly-owned Mahenge mine in Tanzania.
“We are also pleased by the level of interest from existing and new institutional investment groups as the criticality of graphite in the electric vehicle supply chain becomes more apparent,” Mr de Vries said.
“We have a unique opportunity to bring online one of the largest graphite resources globally which is underpinned by its strategic location, a proven team, and now with a strong balance sheet to execute toward construction this year.”
The Mahenge graphite project has a mineral resource estimate of 213 million tonnes at 7.8 per cent total graphite carbon (TGC) as well as ore reserves of 70 million tonnes at 8.5 per cent TGC.
At this stage, the company believes it’s on track for construction to begin in the September quarter.
BKT shares were trading 14.6 per cent lower at 23.5 cents at 10:25 am AEST.
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