Graphite developer Black Rock Mining has successfully completed a heavily oversubscribed placement of 70 million new fully paid ordinary shares at $0.06 a unit primarily to new institutional and experienced investors.
Through the placement, the company has raised $4.2m that will help fund completion of the definitive feasibility study (DFS) on the Mahenge Graphite Project in Tanzania.
Owing to the strong demand from institutional investors, Black Rock Mining opted to increase the size of the placement by an additional $1.2m, placing the company in a financial position that would allow it to complete a DFS on the firm’s wholly owned Mahenge Graphite Project.
Australian company Foster Stockbroking was responsible for performing the role of sole lead manager to the placement.
Black Rock Mining chief executive officer John de Vries said: “The completion of the placement is a significant step in our transition from a graphite explorer to developer and ultimately a global producer.
“The strong support validates our project that combines super low capital costs, high-margins and scale, which we believe makes our Mahenge Graphite the best undeveloped graphite project globally.
“Being fully funded to complete the DFS allows us to continue to de-risk the project, develop our markets and people and progress to a construction decision.”
In April, the company provided results for the preliminary feasibility study (PFS) of the Mahenge Graphite Project, which confirmed its ability to function as a long-life, low capital expenditure (CAPEX, high-margin operation.
With the successful completion of the DFS and associated financing, construction work on the project is expected to begin next year with the first production slated for 2019.