Black Rock Mining has secured an extension of its US$204 million debt facility to November 2026, providing more time to finalise equity funding for the Mahenge Graphite Project in Tanzania.
- Debt facility extended to 30 November 2026
- US$204 million credit facility remains with same banking syndicate
- Extension supports final equity funding for Mahenge development
- Facility includes term loan, revolving credit, and cost overrun components
- Strategic partner POSCO provides up to US$50 million funding
Debt Facility Extension Supports Funding Timeline
Black Rock Mining Limited (ASX:BKT) has secured an extension to its US$204 million debt facility agreement, pushing the deadline for Financial Close to 30 November 2026. This extension provides crucial breathing room as the company works to finalise the remaining equity investment needed to fully fund the development of the Mahenge Graphite Project in Tanzania.
The extension was formally communicated by CRDB Bank PLC, the facility agent for the lending syndicate that also includes the Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation of South Africa (IDC). These financiers have maintained their commitment since the original agreement was executed in September 2024 and expanded in May 2025.
Facility Structure and Conditions
The US$204 million facility comprises a US$138 million term loan, a US$20 million revolving credit facility, a US$20 million cost overrun facility, and a Tanzanian Shilling equivalent of US$26 million in bank guarantees. The funds are earmarked primarily for project construction costs, corporate working capital, managing cost overruns, and mine closure obligations.
Interest rates are linked to the Secured Overnight Financing Rate (SOFR) with margins varying by facility component, for example, the term loan carries SOFR plus 8% before project completion and SOFR plus 6.5% thereafter. Repayments are scheduled quarterly starting 4.25 years after the final investment decision, with a bullet payment due at maturity approximately 8.5 years later.
Equity Funding and Project Development Progress
Black Rock’s Managing Director John de Vries highlighted the importance of the extension aligning debt timelines with ongoing equity and commercial discussions. The additional time is intended to ensure a stable and robust funding framework for Mahenge’s development, which remains construction-ready pending full funding.
The company’s 84%-owned Tanzanian subsidiary, Faru Graphite Corporation, is the borrower under the facility. Black Rock also benefits from strategic funding support from POSCO, which has committed up to US$50 million through equity investments and offtake agreements covering nearly 40% of Module 1 production.
Mahenge is positioned as a tier 1 graphite project with over 200 million tonnes of resources, ranking as the world’s second largest graphite reserve. The project’s modular design and access to competitively priced hydroelectric power underpin its competitive cost structure and attractive projected returns.
Funding Milestones and Regional Support
The facility extension underscores the continued backing from regional development banks and the Tanzanian government, which holds a 16% free carried interest. The project has secured all necessary environmental approvals, mining licenses, and social commitments.
Recent milestones include completion of early works and infrastructure surveys, such as the 220kV transmission line connecting the project to hydro power, which supports both green credentials and cost competitiveness. Black Rock’s progress has been supported by a series of equity raises and strategic partnerships, reflecting steady momentum despite the need for additional equity closure.
Bottom Line?
The facility extension buys Black Rock more time to secure full equity funding, but the absence of a clear equity close timeline leaves the project’s final financing and construction start date uncertain.
Questions in the middle?
- When will Black Rock finalise the remaining equity funding required for Mahenge?
- How will evolving graphite market conditions impact the project's financing strategy?
- What are the risks if equity funding delays extend beyond the new November 2026 deadline?