Tanzanian graphite developer Black Rock Mining Limited, (ASX:BKT) confirms that following the announcement on 17 December 2020, where POSCO Ltd., Korea, signed a term sheet for a US$7.5m equity placement to advance the development of the Mahenge Graphite Mine, POSCO has completed its final internal approval sign off, with both parties now working to finalise the remaining conditions precedent(i).
POSCO Strategic Alliance In parallel to finalising POSCO’s US$7.5m equity investment and as part of the Strategic Alliance to develop the Mahenge Graphite Mine, Black Rock and POSCO are advancing the following agreements:
(i) Offtake & Prepayment Agreement
(ii) Subscription Agreement to the equity investment
(iii) Umbrella & Shareholder Rights Deed Black Rock advises that positive discussions are ongoing with POSCO in relation to the Offtake Agreement including a prepayment facility of up to US$20m.
(i) Conditions precedent to finalise the POSCO investment include the Australian Government Foreign Investment Review Board approval and the Tanzanian Government Fair Competition Commission approval, both of which are expected to be procedural and routine.
