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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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.

Sovereign flags potential Kasiya MRE increases

Sovereign Metals (ASX:SVM) has uncovered an 8km southern extension of mineralisation outside of the current JORC 2012 compliant Mineral Resource Estimate (MRE) area at its Kasiya Project in Malawi, Africa. 

The company says the MRE at Kasiya is already the largest natural rutile deposit and second largest flake graphite deposit in the world. It contains 1.8 billion tonnes at 1% rutile and 1.4% graphite comprising broad contiguous zones of ‘high-grade’ rutile and graphite that occur across an area of over 201km-square. 

The $239.27 million market capitalisation company says the extension, identified from a wide-spaced regional reconnaissance drilling program, remains open along strike and at depth, demonstrating potential for an MRE increase. 

Sovereign announces current focus at Kasiya remains on the ongoing optimisation study alongside strategic investor Rio Tinto (ASX:RIO) and permitting work streams alongside the Malawian Interministerial Committee.

Managing Director Frank Eagar says: “These drilling results re-confirm the significant scale of the Kasiya deposit with the strike now stretching over 37km long. Sovereign continues to test the extent of regional mineralisation via low-cost hand-auger drilling, which has the potential to increase the already very large Kasiya resource.” 

A Prefeasibility Study (PFS) released in late 2023 demonstrated Kasiya’s potential to become the world’s largest rutile and graphite producers outside of China based on an initial 25 year life-of-mine. 

Based on the PFS, the project is expected to produce on average 222,000 and 244,000 tonnes per annum of rutile and natural graphite, respectively.

The PFS also demonstrated ‘robust’ economics with a post-tax net present value of US$1.6 billion, post-tax internal rate of return of 28%, and an average annual earnings before interest, taxes, depreciation, and amortisation of US$415 million per annum. 

PFS modelling was limited to only 25 years with an initial ore reserves declared of 538 million tonnes, only 30% of the total MRE. 

Sovereign Metals holds a strategic rutile province across its ‘large’ groundholding in Malawi.

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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.