Black Rock Raises A$4m at A$0.021 per Share to Boost Mahenge Project
Black Rock Mining has successfully raised A$4 million through an oversubscribed Share Purchase Plan, doubling its initial target and fueling progress at its Tanzanian Mahenge Graphite Project.
- SPP raised A$4 million, doubling original A$2 million target
- Shares issued at A$0.021 with free options exercisable at A$0.03
- Funds to accelerate early works at Mahenge Graphite Project
- Strong retail shareholder demand led to pro-rata scale-back
- Strategic backing from POSCO continues to underpin development
Oversubscribed Share Purchase Plan Exceeds Expectations
Black Rock Mining Limited (ASX, BKT) has announced the successful closure of its Share Purchase Plan (SPP), raising A$4 million; double the initial target of A$2 million. The plan attracted applications totaling approximately A$6 million, prompting the company to accept oversubscriptions up to the maximum approved by shareholders. This robust response underscores strong investor confidence in Black Rock’s flagship Mahenge Graphite Project in Tanzania.
Terms and Shareholder Participation
The SPP offered eligible shareholders the opportunity to purchase shares at A$0.021 each, accompanied by one free option per share exercisable at A$0.03 within two years. Due to the oversubscription, all valid applications were scaled back on a pro-rata basis, with excess funds refunded accordingly. A total of 190.5 million new shares and options will be issued, expected to commence trading on the ASX shortly.
Funding to Accelerate Project Development
CEO John de Vries highlighted that the additional capital will accelerate early construction activities and earthworks at Mahenge, a project already well advanced with environmental approvals, mining licenses, and strategic partnerships in place. The funding boost comes at a critical juncture as Black Rock finalizes project financing and prepares for full-scale development.
Strategic Partnerships and Project Outlook
Black Rock’s partnership with South Korean steel giant POSCO remains a cornerstone of the project’s development, with POSCO having committed significant equity investments and offtake agreements. The Mahenge project boasts one of the world’s largest graphite reserves and is positioned as a low-cost, high-return operation with an estimated capital expenditure of US$231 million for its initial module.
Market Implications and Next Steps
The oversubscribed SPP signals strong retail investor support and confidence in Black Rock’s growth trajectory. With early works now funded, the company is poised to advance construction milestones while continuing to secure the remaining project financing. Market watchers will be keen to monitor how the new share issuance impacts valuation and how swiftly Black Rock can translate this capital into tangible progress on the ground.
Bottom Line?
Black Rock’s oversubscribed capital raise sets the stage for accelerated development, but the path to full financing remains a key watchpoint.
Questions in the middle?
- How will the scale-back affect individual shareholder stakes and market perception?
- What are the timelines and terms for securing the remaining project financing?
- How will POSCO’s increasing involvement influence project execution and offtake volumes?
