The fund raising was completed this week with the placement of 9 million shares to directors and advisers at $0.06 per share for $540,000.
This adds to the $4.2 million raised in a heavily oversubscribed placement completed in November 2017.
The 70 million new fully paid ordinary shares were predominantly placed with new institutional and sophisticated investors.
Mahenge has 16.6 million tonnes of graphite
The Mahenge Graphite Project in the Mahenge region of Tanzania has a resource estimate of 211.9 million tonnes at 7.8% TGC for 16.6 million tonnes of contained graphite.
John de Vries, chief executive officer, said: “The completion of the placement is a significant step in our transition from a graphite explorer to developer and ultimately a global producer.
“The strong support validates our project that combines super low capital costs, high margins and scale.
“Being fully funded to complete the definitive feasibility study allows us to continue to de-risk the project, develop our markets and people and progress to a construction decision.”
Company appoints contractor for study
Black Rock recently appointed CPC Project Design as engineering contractor for the study.
The mid-tier, Perth-based engineering company with extensive graphite and Africa experience expects to start the study this month.
The scope of the study is for the first module of Ulanzi, Mahenge and the associated infrastructure.
Due for completion in second half of 2018
The study is scheduled for completion in the second half of 2018.
Full completion and delivery of the study is subject to and conditional upon Tanzania putting in place its new mining code and regulations.
An optimised preliminary feasibility study completed in August 2017 confirmed the project’s potential as a long-life, low capex, high margin operation.