Black Rock Mining Limited (ASX: BKT) has announced the successful completion of a A$5 million placement to institutional and sophisticated investors. The placement, priced at A$0.023 per share, involves the issuance of 217,391,305 new ordinary shares. The funds raised will be allocated to general corporate costs and, crucially, to advancing discussions for securing the remaining finance required for the Mahenge Graphite Project in Tanzania. The placement was managed by Petra Capital Pty Ltd.
The placement price reflects a discount of 17.9% to the last closing price of BKT shares on February 28, 2025, and a 22.6% discount to the 15-day volume weighted average market price (VWAP). As part of the deal, Black Rock intends to offer placement participants one free unquoted option for every two new shares subscribed. These options will have an exercise price of A$0.035 and expire three years from the issue date, subject to shareholder approval expected at a general meeting in late April 2025. POSCO, holding rights from a previous agreement, may elect to participate, potentially increasing the placement size. CEO John de Vries expressed gratitude for the support and emphasized the importance of these funds in diligently pursuing the remaining project funding.
Black Rock’s Mahenge Graphite Project, boasting a world-class graphite resource, is poised to become a significant player in the graphite market. With environmental approvals, mining licenses, and a resettlement action plan secured, the project is construction-ready, pending final funding. The project features include a modular development approach, aiming for a first-quartile position on the global cost curve. The project has substantial upside potential, with a post-tax NPV estimated at A$2.1 billion. The successful placement represents a crucial step toward realizing the Mahenge project’s full potential amid increasing demand for graphite in energy storage and other high-tech applications. Black Rock is positioning itself to capitalize on this demand with a project designed for attractive returns and scalability.
