Black Rock Mining (ASX:BKT) has secured credit approval for a US$25 million ($16.07 million) increase under a facilities agreement signed in 2024 with the Development Bank of Southern Africa (DBSA), Industrial Development Corporation of South Africa (IDC), and CRDB Bank.
The additional funding will be provided by CRDB in the construction term loan, which increases the total facilities available to US$204m to develop the Mahenge Graphite Project in Tanzania.
ICA Partners, Ashurst, and Clyde & Co. advised the company on its debt financing.
The updated facilities agreement offers Black Rock bank guarantee and CRDB Bank will provide the additional sum through its construction term loan, which has increased from US$113 million to US$138 million.
The tenor of this agreement has been increased by a year, extending it to 8.5 years, with the first scheduled repayment extended nine months to 4.25 years after the final investment decision.
The agreement also sees the company with US$20 million in revolving credit facility for working capital, US$20 million in cost overrun facility, and the remaining US$26 million in bank guarantee facility for rehabilitation bonding.
POSCO is also providing an additional US$50 million comprising US$40 million in equity investment and additional US$10 million in prepayment facility.
Black Rock CEO John de Vries says the increase brings the company “one step closer” to developing Mahenge.
“The additional commitment should give all investors great confidence in Mahenge’s development and outlook as an operating entity within the global supply chain,” de Vries says.
Black Rock Mining has 84% interest in the Mahenge Graphite Project in Tanzania, which spans 324km2 in the Ulanga district.
Write to Maddison Elliott at Mining.com.au
Images: Black Rock Mining
