Black Rock receives more approvals for multi-million-dollar loan

Black Rock Mining (ASX:BKT) has received more key approvals for the $233.17 million (US$153 million) in debt facilities required to develop its Mahenge Graphite Project in Tanzania. 

The $74.62 million market capitalisation company received approvals from Tanzanian lender Cooperative Rural Development Bank (CRDB), for US$40 million in facilities, which encompasses a US$20 million working capital facility and a US$20 million cost overrun facilities. 

Several other Tanzanian lenders have expressed interest in participating in these facilities, but are yet to receive credit approval. Black Rock is continuing discussions with the potential lenders.

As previously reported, the Industrial Development Corporation (IDC) approved a senior term loan of $81.16 million, which is anticipated to form part of Mahenge’s debt facilities. A further $90.59 million comes from The Development Bank of Southern Africa (DBSA), which was previously announced on 2 November 2023. 

While working with debt finance advisors ICA Partners, Black Rock has begun processing document full form facility agreements confirming the final structure of the project’s debt package. 

Black Rock says the 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. 

The CRDB Bank is a commercial bank in Tanzania that was established in 1996. 

Black Rock Mining is an Australian-based company that has an 84% interest in the Mahenge Graphite Project that is targeting first production in 2026. 

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Images: Black Rock Mining
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.