Black Rock Mining executives at the signing of a Framework Agreement with the Government of Tanzania. Source: BKT/Twitter.
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  • Black Rock Mining (BKT) signs offtake deal with POSCO that will support the development of its Mahenge Graphite Mine in Tanzania
  • BKT signed a term sheet with the steelmaker which outlines the indicative terms for a US$10 million (A$13.9 million) prepayment and offtake agreement
  • Under the agreement, Black Rock would hand over 100 per cent of of its planned fines production Mahenge’s Module One to POSCO
  • Beyond today’s deal, Black Rock says there is still potential for an additional US$10 million prepayment from Export Credit Agencies
  • Shares in Black Rock Mining are up 4.55 per cent at 23 cents each

Black Rock Mining (BKT) has signed an offtake deal with POSCO that will support the development of its Mahenge Graphite Mine in Tanzania.

The South Korean steelmaker has signed a term sheet with the ASX-lister setting out the conditions of an offtake agreement and a US$10 million (A$13.9 million) prepayment from Export Credit Agencies.

Under the agreeement, Black Rock will hand over 100 per cent of of its planned fines production from Mahenge’s Module One to POSCO.

The US$10 million prepayment would then be repaid by delivery of the product over an eight year period.

Black Rock Mining MD and CEO John de Vries said the agreement significantly de-risks its Mahenge project.

“We are very pleased to have reached agreement with our strategic alliance partner, POSCO, with this term sheet for both the US$10M prepayment and offtake for 100 per cent of the planned fines production for Mahenge Module One,” he said.

“This is another strong endorsement for the quality of Mahenge’s graphite and serves as a key de-risking milestone for the debt financing process and project development.

“Ultimately, our strategic alliance with a blue-chip partner in POSCO is a key point of differentiation for Black Rock and one which we believe provides additional confidence to potential lenders and institutional investors.”

Beyond today’s deal, Black Rock says there is still potential for an additional US$10 million prepayment from Export Credit Agencies.

The company is also working with its debt finance advisor, ICA Partners, to progress discussions around Mahenge’s debt finance.

Black Rock Mining shares were up 4.55 per cent at 23 cents each at 1:13 pm AEDT.

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