On Monday, several ASX-listed mining companies were either raising capital or securing capital through a range of avenues, including Black Rock Mining (ASX:BKT) which signed a US$179 million ($266.08 million) funding agreement.
Black Rock and its 84%-owned Tanzanian subsidiary Faru Graphite Corporation signed a facilities agreement with the Development Bank of Southern Africa, the Industrial Development Corporation of South Africa, and the Tanzanian lender CRDB Bank to provide US$179 million in funding to develop the Mahenge Graphite Project.
The agreement includes four facilities and is subject to satisfying certain conditions and approval by the Bank of Tanzania.
Black Rock, which has a market capitalisation of $63.85 million, says the US$113 million construction term loan is for the construction of Mahenge Module 1 and associated infrastructure, including the 220 kilovolt (kV) power line from Ifakara to Mahenge connecting the whole community to 220kV power and opening up new business opportunities for the region.
The facilities also include a US$20 million revolving credit facility, a US$20 million cost overrun facility, and a US$26 million bank guarantee facility.
Black Rock was advised on the debt financing by ICA Partners, Ashurt, and Clyde & Co.
Sustainable process technology developer Neometals (ASX:NMT) has also received European Union (EU) funding to support the development of its vanadium recovery project (VRP1) in Finland.
Through its 88%-owned entity Recycling Industries Scandinavia AB (RISAB), the company executed an agreement with EU entity EIT RawMaterials GmbH, which will provide €500,000 ($829,000) in grant funding to RISAB’s wholly owned VRP1 holding company Novana Oy.
EIT RawMaterials will also issue 1.1% of the issued capital of RISAB at the pre-money valuation of €50 million ($82.9 million). The company also has the option to subscribe for up to a further €10 million in additional RISAB equity at the pre-money valuation.
Neometals, which has a market capitalisation of $59.33 million, says the funding will be applied to progressing project financing, with improved economics arising from an additional €15 million conditional investment grant.
The conditional investment grant is provided by the EU-backed Finnish State NextGeneration fund and a potential new Finnish State 20% investment tax credit.
Further, Theta Gold Mines (ASX:TGM) is conducting a two-tranche equity funding placement to raise a total of US$10 million, along with a new private placement for an additional US$2 million.
Under tranche one of the placement, the company has received all proceeds totalling US$6 million from Hong Kong Ruihua Green Development. Tranche one comprised 69.13 million shares at $0.13 per share, alongside 34.56 million unlisted options, on a one free option for every two shares issued.
Under tranche two, Hong Kong Ruihua Investment Management has committed to providing the remaining balance of US$4 million, subject to securing shareholder approvals and meeting certain conditions.
The exact number of new shares and attaching options issued under tranche two will be subject to the conversion rate applied at the time funds are received by the company.
Theta Gold Mines has also received firm commitments for an additional US$2 million from institutional investors, on the same terms as the tranche two placement.
Under the placement, 23.04 million shares will be issued at $0.13 per share, alongside 11.52 million attaching options.
Funds will be applied to development works for plant, tailings storage facility, and water management for its TGME Project in South Africa, alongside plant equipment orders and purchases.
Theta Gold Mines adds the funds will also be used towards securing engineering, procurement, and construction contracts, strengthening its balance sheet, and full redemption of the 2Invest AG Secured Bonds and outstanding interest payments.
Write to Aaliyah Rogan at Mining.com.au
Images: Black Rock Mining
