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BLACK ROCK MINING LIMITED — Capital/Financing Update 2021
Feb 10, 2021
64531_rns_2021-02-10_4c7d4de1-5b2e-42aa-ba4d-005c180c6e52.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT 11 February 2021
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POSCO Equity Investment Agreements Signed
HIGHLIGHTS
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POSCO & Black Rock executes Subscription & Umbrella Agreements pursuant to POSCO’s US$7.5m investment
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Offtake & Prepayment Agreement progressing
Tanzanian graphite developer Black Rock Mining Limited (ASX:BKT) ( Black Rock or the Company ) is pleased to confirm that following the Company’s announcement on 18 January 2021, that POSCO Ltd ( POSCO ) and Black Rock have signed the Subscription Agreement and Umbrella Deed pursuant to the US$7.5m term sheet announced on 17 December 2020 (Term Sheet Announcement).
As stated in the Term Sheet Announcement, completion under the Subscription Agreement is conditional on FIRB approval and approval from the Tanzanian Fair Competition Commission. Black Rock will keep shareholders updated on the progress of these conditions.
In addition, Black Rock will seek shareholder approval under ASX Listing Rule 7.1 for the issue of shares to POSCO. Black Rock expects to convene a general meeting of shareholders in the coming weeks. The transaction is also conditional on there being no material adverse change in Black Rock and no government agency restraining or prohibiting the deal.
Black Rock will use the funds from the POSCO transaction to develop the Mahenge Graphite Project, including conducting a commercial scale test for ore processing to produce commercial scale customer samples, site works and early stage construction.
All other material terms of the Subscription Agreement and Umbrella Deed are as set out in the Term Sheet Announcement. Black Rock continues with positive negotiations with POSCO in relation to the Offtake Agreement including a prepayment facility of up to US$20m.
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 Elvis Jurcevic Chief Executive Officer Investor Relations Black Rock Mining irX Advisors +61 438 356 590 +61 408 268 271 [email protected] [email protected]
Black Rock Mining Ltd ACN 094 551 336 ASX: BKT
Australian Office 45 Ventnor Avenue West Perth, WA 6005 Ph: +61 8 9389 4415 E: [email protected]
Tanzanian Office Mahenge Resources Ltd Msasani Towers Second floor Wing B Dar es Salaam Ph +255 719 382 631
Directors Richard Crookes - Chairman John de Vries - Managing Director & CEO Gabriel Chiappini - Non-Executive Director/Company Secretary Ian Murray - Non-Executive Director
www.blackrockmining.com.au
ASX ANNOUNCEMENT 11 February 2021
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About Black Rock
Black Rock Mining Limited is an Australian based company listed on the Australian Securities Exchange (ASX:BKT). The Company has a 100% interest in the Mahenge Graphite Project ( 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 resources estimate.
On 25 July 2019, the Company released an enhanced Definitive Feasibility Study (eDFS) for the Project, which was based on strong customer demand. The eDFS for the Mahenge Graphite Mine envisages a four phase operation, ultimately producing 340,000 tpa of high-grade graphite, with is was enhanced in July 2019 (refer to ASX release 25 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[**] )
Black Rock has obtained all Environmental approvals, In February 2019, the Company announced receipt of its Mmining Llicences and its Resettlement Action Plan with clear title to for the eDFS project area.
In June 2020, the Company announced a Strategic Alliance with POSCO Group for the development of the Mahenge Graphite Mine. This included an equity investment of US$7.5m and an offtake agreement, currently in progress, which includes a prepayment facility of up to US$20m. Black Rock has also 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 (refer to ASX release 8 May 2019) with five other offtake customers. The Company is progressing these agreements into binding offtake commitments.
Following release of the enhanced DFS (eDFS) in July 2019, the Company confirms that it is not aware of any new data or information that materially affects the results of the eDFS and that all material assumptions and, in the case of estimates of Mineral Resources or Ore Reserves, technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.
The estimated Ore Reserves and Mineral Resources underpinning the production target has been prepared by competent persons in accordance with the requirements in Appendix 5A (JORC Code).
The Company is construction-ready subject to financing and confirmation of Tanzanian Government Free Carried Interest Agreement.The Company is currently progressing financing discussions and detailed engineering with a view to commencing construction of the mine.
| JORC Compliant Mineral Resource Estimate and Ore | JORC Compliant Mineral Resource Estimate and Ore | JORC Compliant Mineral Resource Estimate and Ore | Reserve*** | |||||
|---|---|---|---|---|---|---|---|---|
| Ore Reserves | Tonnes (Mt) | Grade (% TGC) | Contained Graphite (Mt) | |||||
| - Proven | 0 | 0.0 | 0.0 | |||||
| - Probable | 69.6 | 8.5 | 6.0 | |||||
| Total Ore Reserves | 69.6 | 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
- Forecast Capex has been classified as a Class 3 estimate with accuracy of ±10% as defined by AACE
** $AUD/USD 0.70
*** Resource and Ore Reserve Estimates as released to ASX on 8 August 2017 Optimised PFS
Black Rock Mining Ltd ACN 094 551 336 ASX: BKT
Australian Office 45 Ventnor Avenue West Perth, WA 6005 Ph: +61 8 9389 4415 E: [email protected]
Tanzanian Office Directors Mahenge Resources Ltd Richard Crookes - Chairman Msasani Towers John de Vries - Managing Director & CEO Second floor Wing B Gabriel Chiappini - Non-Executive Director/Company Secretary Dar es Salaam Ian Murray - Non-Executive Director Ph +255 719 382 631
www.blackrockmining.com.au