• Black Rock raises A$10 million via a placement to institutional and sophisticated investors
• Funds will be used for early works on the Mahenge Graphite Project, including commencing construction
• Company also launching a A$2 million Share Purchase Plan for eligible shareholders

Black Rock Mining Ltd (ASX: BKT) has received firm commitments to raise A$10 million (before costs) at A$0.021 per share via a two-tranche placement to new and existing institutional and sophisticated investors. The company will also undertake a non-underwritten 'share purchase plan' (SPP), targeting to raise up to A$2 million (before costs) with the ability to accept oversubscriptions, at the same offer price per new share as the placement. Proceeds from the offer will be applied to fund early works for the Mahenge Graphite Project, including commencing construction activities, and general corporate and working capital. Subject to shareholder approval, the company also intends to make an offer of options, on the basis of one new option for every one new share subscribed under the offer. The new options will have an exercise price of A$0.03 and expiry of two years from issue. The placement will comprise the issue of 476,190,477 new shares to raise total proceeds of A$10 million, with the first tranche of 212,992,439 new shares to be issued under the company's existing capacity and the second tranche of 263,198,038 new shares to be issued subject to shareholder approval. The SPP will enable eligible shareholders to apply for up to A$30,000 of new shares and is also subject to shareholder approval.

The funds raised will allow Black Rock to continue to advance the Mahenge Graphite Project whilst completing the funding strategy for the remaining build cost.