Black Rock Mining Ltd (ASX:BKT) directors have demonstrated their faith in the company’s Tanzanian graphite strategy by participating in a recent $3 million oversubscribed placement of more than 42.8 million shares at 7 cents per share.
The participation was approved by the company’s shareholders at the Annual General Meeting on October 28 with more than 5.85 million shares issued to directors on November 18.
Non-executive director Ian Murray bought 4,285,714 shares and now holds in excess of 5.794 million shares in an indirect interest.
Fellow non-executive director Gabriel Chiappini acquired 642,857 shares and he holds almost 6.893 million shares in direct and indirect interests.
Chairman Richard Crookes acquired 642,857 shares and now holds more than 2.7 million in a direct interest.
Managing director and CEO John de Vries acquired 285,714 shares and holds almost 4.034 million in an indirect interest.
In addition, the company finalised the issue of a short-term incentive award to the managing director and CEO by the issue of 535,714 shares, which are included in his total holding.
“Delighted with support”
At the time of the placement de Vries said: “We are delighted with the support we have received from our cornerstone investors and from our board.
“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 Tanzanian Government’s participation in the project.
“Our strategy so 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.
“With the completion of our technical work program, we can now confidently focus on completing our financing and commercial activities and completing document structure of the Tanzanian Government participation in the project.”
The Mahenge project has a JORC-compliant mineral resource estimate of 212 million tonnes at 7.8% TGC inclusive of ore reserves of 70 million tonnes at 8.5% TGC.
These reserves support a mine life of up to 350,000 tonnes of graphite per annum for a reserve life of 16 years.