BlackEarth Minerals NL (ASX:BEM) has initiated discussions with several potential project funding partners in Australia and Europe focusing on the development of its planned graphite project in Madagascar along with downstream processing operations.
These discussions started following the BlackEarth’s recent signing of an MoU with Urbix Resources Inc and a supply and marketing agreement with Luxcarbon GmbH, Germany.
The timing of project funding decisions will be coordinated with the company’s ongoing bankable feasibility study (BFS) that is progressing well and anticipated to be completed later this year.
"Pleased with positive feedback"
BlackEarth managing director Tom Revy said: “The board is pleased with the positive worldwide feedback we have received in relation to our recently signed agreements.
“The signing of these agreements provide a platform for the growth of our business model in the short term.
“We have concluded agreements with strong and supportive partners, and we are now focused on the short-term goals of completing our BFS and a project funding plan to commence the development of our downstream operations and concentrate plant in Madagascar.”
Project funding opportunities
The company plans to fast-track the development of its wholly-owned, high-grade graphite projects in Madagascar and is working on a priority basis to develop downstream operations to produce graphite processed products that can feed the growing EV market.
Company executives have started discussions with parties that have expressed an interest in funding the development plans and as part of this process, has appointed Luxcarbon to advance funding discussions with several German and other European potential funding partners.
Luxcarbon will provide technical advisory services and also meet with and develop project funding plans with investment groups.
Under the terms of the agreement, BlackEarth will issue 4.5 million unlisted options to Luxcarbon at a price of 15 cents with an expiry date of February 9, 2025.
Adjacent project
The company’s board acknowledges the recent announcement relating to the development of the Molo Graphite Project adjacent to its own projects in Southern Madagascar.
This development is likely to provide infrastructure improvements to the region that will benefit BlackEarth and industry in general in the region.
BlackEarth is also concluding a number of extensive development plans for its sites in Madagascar as part of its BFS.