Black Rock Mining Raises A$10M at 24% Discount to Fund Mahenge Build
Black Rock Mining has locked in A$10 million through a two-tranche placement to institutional and sophisticated investors, with a Share Purchase Plan to follow, aiming to accelerate early construction at its Mahenge Graphite Project.
- A$10 million placement at A$0.021 per share secured
- Share Purchase Plan targeting up to A$2 million to launch mid-September
- Funds earmarked for early works and construction at Mahenge Graphite Project
- Option offer proposed, subject to shareholder approval, exercisable at A$0.03
- Key shareholder meeting scheduled for mid-October 2025
Capital Raise to Propel Mahenge Project
Tanzanian graphite developer Black Rock Mining Limited (ASX, BKT) has successfully secured firm commitments to raise A$10 million through a two-tranche placement priced at A$0.021 per share. This capital injection is aimed at funding early construction activities and advancing the Mahenge Graphite Project, a key asset in the company’s portfolio.
The placement, split into an initial tranche of 212.9 million shares raising A$4.5 million and a second tranche of 263.2 million shares raising A$5.5 million pending shareholder approval, represents a significant step forward in Black Rock’s development timeline. The offer price reflects a notable discount of approximately 24% to recent trading prices, underscoring the company’s urgency to secure funds for project progression.
Share Purchase Plan to Engage Existing Investors
In addition to the placement, Black Rock plans to launch a non-underwritten Share Purchase Plan (SPP) targeting up to A$2 million, with the flexibility to accept oversubscriptions. The SPP will be offered at the same price as the placement and is designed to provide existing eligible shareholders the opportunity to participate on equal footing with institutional investors. The SPP is subject to shareholder approval, expected to be sought at a general meeting scheduled for around 17 October 2025.
CEO John de Vries expressed optimism about the capital raise, highlighting the strong support from investors and the strategic importance of the funds to commence early works at Mahenge. He also welcomed new investors and thanked existing shareholders for their continued backing, signaling confidence in the project’s potential.
Options Offer Adds Incentive for Investors
Subject to shareholder approval, Black Rock intends to offer options to participants in the placement and SPP on a one-for-one basis. These options will carry an exercise price of A$0.03 and a two-year expiry, potentially providing additional upside for investors if the company’s share price appreciates. The options are proposed to be quoted on the ASX, pending regulatory approvals.
This layered capital raising approach, combining placement, SPP, and options, reflects a comprehensive funding strategy designed to underpin the next phase of Mahenge’s development while managing dilution and investor engagement carefully.
Looking Ahead
The timetable for the capital raising is well-defined, with tranche one settlement and allotment expected in early September, the SPP opening mid-September, and shareholder meetings in October. The company’s ability to execute these steps smoothly will be critical to maintaining momentum and investor confidence as it moves toward construction commencement.
Black Rock’s focus on the Mahenge Graphite Project aligns with growing global demand for graphite, a critical mineral in battery technologies and renewable energy sectors. The successful capital raise positions the company to capitalize on this demand, though execution risks remain as with any mining development.
Bottom Line?
Black Rock’s fresh capital injection sets the stage for Mahenge’s build phase, but shareholder approvals and market conditions will be pivotal next hurdles.
Questions in the middle?
- Will shareholder approval for tranche two and the option offer be secured without delays?
- How will Black Rock manage dilution concerns among existing shareholders given the sizeable placement and SPP?
- What is the timeline and budget outlook for the full construction and commissioning of the Mahenge Graphite Project?
