Black Rock Mining Limited has signed binding offtake and prepayment agreements with shareholder and Strategic Alliance Partner POSCO International Corp. to support the development of the Mahenge Graphite Project in Tanzania.
The agreement will see Black Rock supply high-purity graphite for 100% of the life of mine planned fines production from Mahenge’s Module 1.
Additionally, the agreement includes a $15.29 million prepayment commitment linked to a visible industry pricing benchmark.
The deal converts the term sheet announced on 23 December 2021 to full-form agreements and supports a clear path to a qualified commercial market for Black Rock’s high-quality graphite concentrate.
The agreements were executed between Black Rock’s Tanzanian subsidiary, Faru Graphite Corp., and POSCO.
According to Black Rock CEO John de Vries, the binding agreements provide customer validation that the company has commercial and high-value graphite products that will be sold into customer markets under a long-term contracted off-take.
“Secondly, this cornerstones Mahenge’s robust forecast economics, providing a runway to finalising the debt finance process. The company continues to progress its project debt financing process through advisors ICA Partners with credit-approved term sheets anticipated in Q2 CY23,” de Vries added.
