South Korean steel manufacturer POSCO will invest $40 million in Tanzanian firm Black Rock Mining.
The investment will be made in phases, with the first phase consisting of a $9-million facility that will increase POSCO’s stake in Black Rock Mining from 10.1% to 19.99%.
The second phase of funding will provide Black Rock Mining with the capital needed to develop Module 1 of the Mahenge Graphite Project in Tanzania, while granting POSCO long-term offtake rights for graphite concentrate from Module 2 of the project.
The deal “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,” stated Black Rock Mining CEO, John de Vries.
