US $53.4M secured for Mahenge Graphite Project in Tanzania.
A sum of US $53.4M has been secured to fund the Mahenge Graphite Project in Tanzania. Black Rock Mining confirmed the report and said they received the loan approval from the Industrial Development Corporation (IDC).
The Mahenge Project is spread across 324 square kilometres of exploration tenements in Tanzania’s Ulanga district, approximately 250 km north of the border with Mozambique. 250 km west of the coastal port city of Mtwara on the Indian Ocean and 300 km southwest of Tanzania’s largest city, Dar es Salaam.
Loan terms
This loan, along with a previously approved $59.6 million senior loan from the Development Bank of Southern Africa, is expected to form a substantial portion of the project’s debt financing, totaling $113 million. The IDC’s senior-term loan is subject to the finalization of definitive agreements, which will outline the terms and conditions of the loan. While the exact terms are yet to be finalized, it’s anticipated that the loan will have a tenure of seven years. The company is currently focused on documenting full form facility agreements and confirming the final structure of the debt package for the Mahenge project.
Additionally, Black Rock Mining has entered into a memorandum of understanding (MOU) with its Strategic Alliance Partner, Posco International, which outlines a potential equity investment of up to $40 million. This investment, once finalized, will further strengthen the project’s financial position.
The funding strategy for the Mahenge Graphite Project involves a mix of debt and equity, with the aim of commencing production by 2026. The company is targeting first production from Module 1 of the project by this time.
