Black Rock Signs Offtake and Investment MOU with Posco

Officials from POSCO and Black Rock Mining, among others, during the agreement signing ceremony. Credit: Black Rock Mining Limited

Tanzanian graphite developer Black Rock Mining Limited  announces that is has signed a non-binding Memorandum of Understanding agreement with Strategic Alliance Partner, POSCO International Corporation (POSCO), in relation to the long-term fines offtake of graphite concentrate from Module 2 of the Mahenge Graphite Project (the Project or Mahenge).

The Agreement envisages the long-term supply of fines graphite from planned production of Mahenge Module 2 in exchange for an additional Posco investment in BKT, subject to Posco approval, of up to US$40m or an equity stake of 19.99% (whichever is lower). Negotiations are underway to secure a binding agreement.

The Agreement builds on the strategic partnership between Black Rock and POSCO which is working towards developing the Mahenge Graphite Project to provide a significant new source of natural graphite into a highly dependent global market driven by clean energy demand. Importantly, the Agreement also signals further de- risking of the Company’s funding strategy to develop Mahenge.

Commenting on the Agreement with Posco on Module 2, Black Rock CEO, John de Vries, said:

“We are extremely pleased to be further deepening our relationship with POSCO and we believe today’s announcement represents a strong endorsement of the promising future of the Mahenge Graphite Project. Posco’s confirmed interest in Mahenge Module 2 also represents a major de-risking milestone for the Company, providing increased confidence for all of our stakeholders as well as improved visibility on funding and our pathway to production.”