POSCO to Acquire 15% of Tanzanian Graphite Miner Black Rock
POSCO Black RockBlack Rock Mining

POSCO to Acquire 15% of Tanzanian Graphite Miner Black Rock

Tanzanian graphite developer Black Rock Mining Limited announced that, subject to a final internal POSCO Group of Korea approval process, it has agreed an

Tanzanian graphite developer Black Rock Mining Limited announced that, subject to a final internal POSCO Group of Korea approval process, it has agreed an Investment Term Sheet with POSCO for the placement of USD 7.5 million worth of shares in Black Rock to acquire an equity interest of 15%. Black Rock is to issue a total of 126,020,001 shares at an issue price of AUD 0.082 per share. This represents a 23% premium to the 30-day VWAP and a 15% premium to the 15-day VWAP, prior to the agreed share price standstill date of 20 November 2020. Subject to POSCO maintaining a minimum of 10% equity interest in Black Rock, POSCO has the right to nominate a director to the board of Black Rock.

The parties intend to negotiate an offtake and prepayment agreement pursuant to which POSCO will acquire between 20,000 to 40,000 tonnes per annum of minus 195 flake graphite for the life of mine production from Module 1 of the plant to be constructed at Mahenge. The terms of purchase are to be negotiated as part of the long-form offtake & prepayment agreement. In addition, POSCO has indicated a preparedness to provide between USD$10 million to USD$20 million as a prepayment facility, with the facility to be used as development funding for the Mahenge Graphite Project.

The parties have agreed to use their reasonable endeavours to execute a formal long-form offtake & prepayment agreement by 31 March 2021 to give effect to the above intention.

No stories found.
SteelGuru Business News
www.steelguru.com