Black Rock signs US$179m Agreement with DBSA, IDC and CRDB to develop Mahenge Graphite Mine

Black Rock Mining ASX.BKT

HIGHLIGHTS

Black Rock signs Agreement with
- The Development Bank of Southern Africa (DBSA);
- The Industrial Development Corporation of South Africa (IDC); and
- Tanzanian lender CRDB Bank (CRDB).
The Agreement provides US$179m in loan and bank guarantee facilities to fund the development of the Mahenge Graphite Project, comprising:
- US$113m Construction Term Loan;
- US$20m Revolving Credit Facility (working capital);
- US$20m Cost Overrun Facility; and
- US$26m Bank Guarantee Facility (rehabilitation bonding).
These facilities are in addition to the US$50m being provided by POSCO, comprising the recently approved US$40m equity investment in Black Rock and the US$10m prepayment facility

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Tanzanian graphite developer Black Rock Mining Limited (ASX: BKT) (Black Rock, BKT or the Company) is pleased to confirm Black Rock and its 84%-owned Tanzanian subsidiary, Faru Graphite Corporation (Faru) have signed a Facilities Agreement (Agreement) with DBSA, IDC and CRDB to provide US$179m in funding to develop the Mahenge Graphite Project (Mahenge). The Agreement is subject to satisfaction of customary conditions precedent and approval by the Bank of Tanzania.

The Agreement includes four facilities and contains terms and conditions typical for facilities of this kind. The key commercial terms are summarised in Schedule 1.

The purpose of the US$113m Construction Term Loan is for the construction of Mahenge Module 1 and associated infrastructure, including the 220kV power line from Ifakara to Mahenge connecting the whole community to 220kV power and opening up a host of new business opportunities for the entire region.

Black Rock was advised on the debt financing by ICA Partners, Ashurst, and Clyde & Co.

Commenting on signing the Facilities Agreement, Black Rock CEO, John de Vries, said:

“We are extremely pleased to have concluded our debt financing process for Mahenge and to be signing the Facilities Agreement with a group of such high calibre lenders.

Today’s announcement represents a major de-risking milestone for Black Rock towards funding the development of the Mahenge Graphite Project.

We look forward to working with DBSA, IDC and CRDB to develop Mahenge for the benefit of all our stakeholders.”

Above: The Facilities Agreement Signing Ceremony with DBSA, IDC and CRDB in Johannesburg after market close on 13 September 2024. Attendees from left to right are Nina Yose, Head of Infrastructure, IDC; Russell Wallace, Manager – Legal Services, IDC; Lungile Tom, Head of Project Finance, DBSA; Abdulmajid Mussa Nsekela, CRDB Group CEO and Managing Director; John de Vries CEO Black Rock Mining; Richard Crookes, Chairman, Black Rock Mining.

Media and Investor contact:

Steuart McIntyre
GM Corporate Development
Black Rock Mining
+61 413 555 609
sm@blackrockmining.com.au

Elvis Jurcevic
Investor Relations
+61 408 268 271
ej@blackrockmining.com.au