Black Rock Mining Limited has signed a non-binding Memorandum of Understanding (MOU) with POSCO International Corporation for the long-term fines offtake of graphite concentrate from Module 2 of the Mahenge Graphite Project.
The Agreement calls for a long-term supply of fine graphite from Mahenge Module 2 output in exchange for an additional POSCO investment in BKT of up to US$40 million or a 19.99% equity ownership (whichever is less) subject to POSCO approval. Negotiations to reach a binding agreement are now underway.
The agreement builds on Black Rock and POSCO’s strategic relationship, which is working to develop the Mahenge Graphite Project, which will bring a significant new source of natural graphite into an increasingly dependent global market driven by clean energy demand. Importantly, the company said the agreement de-risks its financial plan for developing the Mahenge Graphite Project even further.
“We are extremely pleased to be further deepening our relationship with POSCO and we believe today’s announcement represents a strong endorsement of the promising future of the Mahenge Graphite Project,” Black Rock CEO John de Vries said.
“POSCO’s confirmed interest in Magenge Module 2 also represents a major de-risking milestone for the Company, providing increased confidence for all of our stakeholders as well as improved visibility on funding and our pathway to production,” de Vries added.
