THE BOURSE WHISPERER: Black Rock Mining (BKT: ASX) announced completion of a placement to raise $3 million by issuing approximately 42.9 million shares at seven cents per share.
Black Rock Mining indicated that the funds raised will go towards progressing project financing activities being supported by its debt advisors, Ironstone Partners, and completion of commercial and permitting activities for the company’s 100 per cent-owned Mahenge graphite project in Tanzania.
“We are delighted with the level of support we have received from our cornerstone investors and from our board,” Black Rock Mining CEO John de Vries said in the company’s announcement to the Australian Securities Exchange.
“This placement of $3 million enables Black Rock to progress financing activities with a view to being construction ready for delivery of the Mahenge graphite project on resolution of the structure of the Tanzanian Government’s participation in the project.
“Our strategy thus far has been to focus on delivery of project development milestones.
“In achieving our development milestones we have progressed our financing objectives by de-risking the project and enhancing our market entry strategy.
“Simply put, the lower our risk profile, the better the financing outcome.
“With the completion of our technical work program, we can now confidently focus on completing our financing and commercial activities and completing documentation the structure of the Tanzanian Government participation in the project.
“We look forward to progressing the project to financing and execution.”