Black Rock Mining Limited has signed a non-binding Memorandum of Understanding (MoU) off-take agreement with POSCO International Corp. to supply high-quality natural large-flake graphite concentrate from the Mahenge Graphite Project in Tanzania.
The agreement is for the supply of 6,000 metric tonnes per annum of high-quality large natural flake graphite concentrate from Mahenge Module 1.
Black Rock will now begin negotiations with POSCO on a binding agreement subject to product specifications and commercial terms.
According to the company, the MoU deepens its relationship with Strategic Alliance Partner POSCO by adding to the existing off-take in place and builds confidence that Mahenge will become a large and significant new source of graphite.
The agreement also signals the further de-risking of the company’s funding strategy with deeper coverage of its off-take position with a blue-chip counterparty in POSCO.
Black Rock CEO John de Vries said the expansion of the company’s strategic partnership with POSCO represents an important de-risking milestone for potential lenders as part of finalising its project debt for Mahenge.
“I am also pleased that POSCO continues to place their trust in Black Rock as a partner with respect to supporting their own growth plans,” de Vries added.
“Mahenge represents a globally-significant, large and critical new source of high-quality natural flake graphite, which is now one step closer to securing debt finance in advance of construction,” he said.
