Black Rock extends POSCO deadline

The two companies earlier this year inked a strategic alliance and development memorandum of understanding (MoU) over the Mahenge graphite project, which could see POSCO invest an initial $10-million in either shares or convertible notes in Black Rock, with the funding going towards early work programmes and the provision of all weather site access at Mahenge.

A second investment, of an amount yet to be determined, would also be made by POSCO, with those funds going towards project construction.

The Phase 2 investment would be made either by way of a share subscription into Black Rock or by taking a direct interest in the Mahenge project, or by obtaining the offtake rights for up to 100% of the sub #100 mesh concentrate from the first module at Mahenge, which amounts to some 40 000 t/y.

Black Rock on Tuesday told shareholders that POSCO was progressing due diligence activities at the Mahenge project, with CEO and MD John de Vries saying that the revised due diligence schedule would accommodate for the impact of ongoing Covid-19-related restrictions, and would allow POSCO to complete the remaining work under a ‘sensible’ timeframe.

“Black Rock is the only graphite development company that has been able to put product into the hands of a battery major. The fact we now have customer data validating our product for the first cycle efficiency is a very significant milestone,” he added.

“Based on the 300 cycle battery testing Black Rock performed in the US, we are confident of the performance characteristics of Mahenge graphite heading into long-term cycle testing now underway with POSCO.”