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BLACK ROCK MINING LIMITED — Capital/Financing Update 2020
Jul 13, 2020
64531_rns_2020-07-13_296e2e39-24cb-4e15-a389-6d836ef08342.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT 14 July 2020
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DESPATCH OF ENTITLEMENT OFFER
Tanzanian graphite developer Black Rock Mining Limited (ASX:BKT) ( Black Rock or the Company ) advises that the Prospectus and Entitlement and Acceptance Form for the Fully Underwritten Non-Renounceable Entitlement Issue ( Offer ) lodged with ASX on 7 July 2020 has today been provided to eligible shareholders. Eligible shareholders may access a copy of the Prospectus, along with their personalised entitlement and acceptance form, by accessing: https://blackrockminingoffer.thereachagency.com
Shareholders that have elected to receive notices from the Company in electronic format will receive details of the Offer via email. Shareholders that have not made such an election will receive details of the Offer by post or can access their offer via https://blackrockminingoffer.thereachagency.com. Notifications have also been sent to ineligible foreign shareholders.
Entitlement Offer
As announced on 3 July 2020, Black Rock is undertaking a pro-rata non-renounceable entitlement issue to eligible shareholders of ordinary fully paid shares in the Company on the basis of one (1) new share ( New Share ) for every sixteen (16) shares held at the record date on 9th June 2020 ( Record Date ) at an issue price of $0.042 per share to raise up to approximately A$1.65 million (before costs) ( Offer ). Subscribers to the Offer will also receive one (1) free option ( New Option ) for every one (1) New Share subscribed for and issued, exercisable at $0.084 per option on or before the date which is three years from the date of issue. The options will not be quoted.
Entitlement Offer Timetable (Indicative timetable is Subject to the ASX listing rules, the above dates may change without notice)
| Event | Date |
|---|---|
| Announcement of Entitlement Offer | 3 July2020 |
| Appendix 3B lodged with ASX | 3 July2020 |
| Lodgement of Prospectus with ASIC & ASX | 6 July2020 |
| Ex-date | 8 July2020 |
| Record Date for determiningEntitlements | 9 July2020 |
| Prospectus sent to Eligible Shareholders. Opening Date of the Offer | 14 July 2020 |
| Closing Date of the Offer | 4 August 2020 |
| Securitiesquoted on a deferred settlement basis | 5 August 2020 |
| Announcement of results of issue | 6 August 2020 |
| Shortfall notification | 7 August 2020 |
| Issue date of Securities under the Offer. Dispatch of holdingstatements | 11 August 2020 |
| Appendix 2A to be lodged with ASX applyingforquotation of actual number of Securities issued | 11 August 2020 |
For all general shareholder enquiries relating to the Offer, please contact Computershare Investor Services Pty Ltd on 1300 850 505 (within Australia) or +61 3 9415 4000 (outside Australia) between 8:30am and 5:00pm (Sydney time) on Monday to Friday during the Offer period.
This ASX release was authorised on behalf of the Black Rock Board by: John de Vries, Managing Director & CEO
For more information:
John de Vries Chief Executive Officer Black Rock Mining +61 438 356 590 [email protected]
Elvis Jurcevic Investor Relations irX Advisors +61 408 268 271 [email protected]
Black Rock Mining Ltd ACN 094 551 336 ASX:BKT
Issued Capital 628.9m Shares 64.2m Options
Australian Registered Office 45 Ventnor Avenue West Perth, WA 6005 Ph: +61 8 9389 4415 E: [email protected]
Tanzanian Office Directors Mahenge Resources Ltd Richard Crookes Msasani Towers John de Vries Second Floor, Wing B Gabriel Chiappini PO BOX 105735 Ian Murray Dar es Salaam Tanzania
www.blackrockmining.com.au
ASX ANNOUNCEMENT 14 July 2020
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About Black Rock Mining
Black Rock Mining Limited is an Australian based company listed on the Australian Securities Exchange (ASX:BKT). The Company currently has a 100% interest in the Mahenge Graphite Project (the "Project") located in Tanzania. The Project has a JORC compliant Mineral Resource Estimate of 212m tonnes at 7.8% TGC. It also has Ore Reserves of 70m tonnes at 8.5% TGC. The Ore Reserves support a mine life of up to 350k tonnes of graphite per annum for a reserve life of 16 years. Since the release of the Mineral Resource Estimate, the Company confirms that it is not aware of any new information or data that materially affects the Mineral Resource Estimate.
In October 2018, the Company released a Definitive Feasibility Study (DFS) for the Project, which was based on strong customer demand. This DFS was enhanced in July 2019, and demonstrates exceptional financial metrics including:
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Low Capex : Lowest peak capital expenditure of US$116M for phase one[*] ;
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High Margin : AISC margin of 63.1%;
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Low Technical Risk : Substantial pilot plant operations run of 110 tonnes; and
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Superior Economics : IRR of 44.8% with NPV10 of US$1.16bn (A$1.65bn[**] ).
Following release of the Enhanced DFS in July 2019, the Company confirms that it is not aware of any new data or information that materially affects the results of the Enhanced DFS and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.
In February 2019, the Company announced receipt of its mining licence for the DFS Project. In May 2019, the Company announced it had substantially allocated planned production with up to 255k tonnes per annum of graphite committed to sale by year three of production, through Pricing Framework Agreements.
The Company is currently progressing financing discussions and detailed engineering with a view to commencing construction of the Project.
| JORC Compliant Mineral Resource Estimate and Ore Reserve | JORC Compliant Mineral Resource Estimate and Ore Reserve | JORC Compliant Mineral Resource Estimate and Ore Reserve | JORC Compliant Mineral Resource Estimate and Ore Reserve | ||||
|---|---|---|---|---|---|---|---|
| Ore Reserves | Tonnes (Mt) | Grade (% TGC) | Contained Graphite (Mt) | ||||
| - Proven | 0 | 0.0 | 0.0 | ||||
| - Probable | 70 | 8.5 | 6.0 | ||||
| Total Ore Reserves | 70 | 8.5 | 6.0 | ||||
| Mineral Resources | |||||||
| - Measured | 25.5 | 8.6 | 2.2 | ||||
| - Indicated | 88.1 | 7.9 | 6.9 | ||||
| Total M&I | 113.6 | 8.1 | 9.1 | ||||
| - Inferred | 98.3 | 7.6 | 7.4 | ||||
| Total M, I&I | 211.9 | 7.8 | 16.6 | Location of Black Rock’s Mahenge Graphite Project in Tanzania | |||
For further information on Black Rock Mining Ltd, please visit www.blackrockmining.com.au
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Forecast Capex has been classified as a Class 3 estimate with accuracy of ±10% as defined by AACE
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** $AUD/USD 0.70
Black Rock Mining Ltd ACN 094 551 336 ASX:BKT
Issued Capital 628.9m Shares 64.2m Options
Australian Registered Office 45 Ventnor Avenue West Perth, WA 6005 Ph: +61 8 9389 4415 E: [email protected]
Tanzanian Office Directors Mahenge Resources Ltd Richard Crookes Msasani Towers John de Vries Second Floor, Wing B Gabriel Chiappini PO BOX 105735 Ian Murray Dar es Salaam Tanzania
www.blackrockmining.com.au