Black Rock Mining Ltd (ASX:BKT) directors and management have shown their confidence in the company’s Tanzanian graphite strategy by participation in a placement.
The company has now received $500,000 from the executives as part of the oversubscribed $3 million placement completed by Black Rock in August 2018.
Approved by shareholders
Directors and management had subscribed for 15.625 million shares and this was approved by shareholders at the company’s annual general meeting on November 7, 2018.
Black Rock’s CEO John de Vries said: “The board and management continue to believe we have the best global development-stage graphite project and are certainly delighted to be able to invest alongside other shareholders.
“Our focus remains moving into construction quickly.
“The additional funds will be used to progress the final stages of our pre-construction activities for our 100%-owned Mahenge Graphite Project.”
READ: Black Rock Mining signs second graphite offtake agreement
Black Rock recently signed its second offtake agreement for natural flake graphite from the proposed mine.
This agreement is with China-based Qingdao Fujin Graphite Company Limited to supply 15,000 tonnes per year for up to three years at pricing to be determined.
It followed an earlier three-year agreement with Heilongjiang Bohao Graphite Company Limited to annually supply up to 90,000 tonnes of blended graphite concentrate.
READ: Black Rock Mining DFS values Tanzania graphite project at US$895 million
A definitive feasibility study for Mahenge has demonstrated geological and geographical advantages and low-cost-to-customer advantages.
Post-tax, unlevered net present value (NPV) of US$895 million was matched with a post-tax, unlevered internal rate of return (IRR) of 42.80%.
The DFS put average annual steady state production rate at 250,000 tonnes, while total life-of-mine concentrate production was 6.6 million tonnes.
One of world’s largest resources
Mahenge has one of the largest JORC-compliant flake graphite mineral resource estimates in the world, with 211.9 million tonnes grading 7.8% total graphitic carbon for 16.6 million tonnes of contained graphite.