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18/07/2024
Mining News

Black Rock Mining secures $53.4m loan from IDC for Mahenge graphite project in Tanzania

Black Rock Mining has received approval for a substantial $53.4 million loan from the Industrial Development Corporation (IDC) to support its Mahenge graphite project in Tanzania, marking a significant milestone in project financing. The loan, a senior-term facility from IDC, is a crucial component of the project’s debt financing and is subject to the finalization of definitive agreements.

Combined with a previously secured $59.6 million senior loan from the Development Bank of Southern Africa, the IDC loan is expected to form part of a $113 million term loan package for the Mahenge project. The loan terms, anticipated to span seven years, are yet to be finalized.

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Black Rock Mining is currently focused on concluding full-form facility agreements and determining the final structure of the project’s debt package. While the terms and conditions of such agreements typically align with standard financing practices, the company acknowledges potential variations depending on lenders’ requirements and the execution of facility agreements.

To commence production, the project’s funding strategy encompasses a blend of debt and equity. Additionally, Black Rock entered a memorandum of understanding (MOU) with its Strategic Alliance Partner, Posco International, on September 4, 2023. The MOU outlines a prospective cornerstone equity investment of up to $40 million in Black Rock, pending final approvals.

With the anticipation of securing these investments in the near term, the company remains focused on achieving its goal of commencing production from Module 1 of the Mahenge graphite project by 2026.

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