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Black Rock and POSCO complete external due diligence & commence negotiating Investment Agreement
release time :2020-11-26 10:31:46 page view:1116

Nov. 26, 2020 - Tanzanian graphite developer Black Rock Mining Limited (ASX:BKT) (Black Rock or the Company) is pleased to announce that both Black Rock and its Strategic Alliance and Development partner, POSCO Ltd (POSCO) have completed the relevant external due diligence activities. 


Background 

Black Rock announced in June 2020, that it had entered into a Strategic Alliance & Development Memorandum of Understanding with Korean industrial group, POSCO, for the development of the Mahenge Graphite Project. Both companies were to complete due diligence activities with the objective of entering into a binding Investment Agreement. 

Due Diligence Completion 

POSCO undertook product due diligence by conducting independent performance testing of Mahenge graphite, including spheronizing concentrate to POSCO battery specifications. Anode for battery cell performance testing was prepared from the spheronized graphite, including coating using POSCO’s proprietary Intellectual Property. Extended battery performance testing has been completed, confirming anode made from Mahenge graphite meets POSCO reference standards and is suitable for lithium-ion battery anode feedstock (ASX announcement 11 November 2020).


POSCO has completed external technical, legal and commercial due diligence and will proceed with an internal investment review to determine the scope and nature of any potential support for the development and operation of the Mahenge Graphite Project 


Binding Investment Agreement 

The parties have entered into a negotiation period to agree commercial terms to form a binding Investment Agreement. Under the contemplated agreement it is anticipated that POSCO will make an initial equity investment in Black Rock and elect to take up a long-term offtake agreement for up to 100% of fines (sub #100 mesh). 


The binding Investment Agreement will allow for POSCO’s initial equity investment to be constructed on a share price standstill formula based on Black Rock’s share price leading up to the close of trading on the ASX on 20 November 2020 (being the end date of the due diligence period).


Commenting on the partnership with POSCO, Black Rock Managing Director and CEO, John de Vries said: 

“The Company is pleased with the official completion of POSCO’s external due diligence and the manner in which our partnership with such a significant global corporation as POSCO is progressing. 


This outcome advances a clear pathway for the development of the Mahenge Graphite Project.”

Black Rock Mining

Address: WA-West Perth-45 Ventnor Ave Postal Code: 6005 Website: blackrockmining.com.au

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