Mar. 5, 2021 - The Foreign Investment Review Board (FIRB) has approved Korean major POSCO’s $7.5-million investment into ASX-listed Black Rock Mining.
Under an agreement struck last year, POSCO would acquire a 15% interest in Black Rock by subscribing for more than 126-million shares in the Australian company, at an issue price of 8.2c each.
Black Rock will use the funds from the POSCO transaction to develop its Mahenge graphite project, in Tanzania, including conducting a commercial-scale test for ore processing to produce commercial scale customer samples, site works and early stage construction.
“Access to POSCO’s equity contribution of $7.5-million enables Black Rock and our 100% owned Tanzanian subsidiary Mahenge Resources to complete detailed engineering, early site clearance planning and commercial scale product qualifications,” said Black Rock MD and CEO John de Vries.
“With this, the Mahenge graphite project will be positioned to complete required financing in an efficient and timely manner. The company anticipates site works in the second half of the 2021 calendar year, pending resolution of the government of Tanzania’s free carry interest agreement.”
Both POSCO and Black Rock are finalising the last remaining conditions precedent for the investment, including the Tanzanian government’s Fair Competition Commission approval.