Black Rock secures multi-million-dollar loan approval

Black Rock Mining (ASX:BKT) has secured key approvals for a targeted $171.75 million (US$113 million) term loan for its Mahenge Graphite Project. 

The Industrial Development Corporation (IDC) has approved a senior term loan of $81.16 million (US$53.4 million), which is expected to form part of the project debt facilities for Mahenege. 

The remaining $90.59 million (US$59.6 million) will come from The Development Bank of Southern Africa (DBSA). 

Black Rock, which has a market capitalisation of $68 million, says the loan terms remain subject to documentation, but the loan tenor is anticipated to be 7 years and the interest rate will be based on the Secured Overnight Financing Rate (SOFR) plus a margin. 

The company is seeking to document full form facility agreements and confirm the final structure of the Mahenge project debt package. 

As previously announced on 4 September 2023, the company has signed an memorandum of understanding (MoU) with its strategic alliance partner South Korean steel conglomerate POSCO International for a potential cornerstone equity position in Black Rock, of up to US$40 million and final approvals for this investment are expected near term. 

Black Rock is targeting first production from Module 1 in 2026. 

Black Rock Mining is an Australian-based company focused on the Mahenge Graphite Project in Tanzania, which hosts a multi-generational graphite resource and is one of the ‘largest’ JORC-complaint flake graphite resources globally. 

Write to Aaliyah Rogan at Mining.com.au   

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.