BLACK ROCK MINING LTD (BKT)
Strategic Focus Shifts to Highly Prospective Tanzanian Graphite
SUMMARY
SPECULATIVE
28 April 2015
Share Trading Info
ASX Code
BKT
Sector/Stage
Graphite Explor.
Current Share Price (cps)
5.0
Trading Low/High (Rolling Year) (cps)
0.1 - 5.9
Ordinary Shares on Issue (m)
196.9
Listed Options (m)
35.0
Unlisted Options (m)
3.9
Performance Rights (m)
6.7
Mkt Capitalisation (undiluted) ($m)
9.8
Cash as at 31 December 2014 ($m)
1.2
Funds Raised from Placement ($m)
3.5
Board of Directors
Stephen Copulos
Black Rock Mining (‘BKT’ or ‘Company’) is rapidly
progressing early exploration at its Mahenge Graphite
Project in Tanzania, having completed a maiden drilling
program in late February (after initial exploration was
completed in December 2014).
Non Executive Chairman
Steven Tambanis
Managing Director
Gabriel Chiappini
Non Executive Director
Major Shareholders
Copulos Group (Incl Associated Entities)
25.4%
ASAB Resources (T) Ltd
4.0%
Gasmere P/L
3.6%
BKT,
previously
Green
Rock
Energy Ltd (ASX: GRK)), formerly
had interests in geothermal and
hydrocarbon assets and has
changed its focus to graphite in
Tanzania.
Work is currently underway for an infill drilling program at
one of the tenements, the flagship Epanko North Graphite
Project expected to commence in June 2015, and with a view
to obtaining a JORC resource at Epanko North by the end of
2015.
The Company has nine semi-contiguous exploration Licences
(four granted and five under option agreements). The
Mahenge Graphite project is considered to be highly
prospective for graphite mineralisation, given that the
licences contain the correct rocktypes that hosts graphite
mineralisation
and
exhibit
high-grade
graphite
mineralisation at surface, with significant depth extent –
indicating the potential to host an open-pittable resource.
The project area has a similar geological setting and
mineralisation style to Kibaran Resources’ (ASX: KNL)
Epanko orebody, which extends to the immediate north into
BKT’s Mahenge North Graphite Project. KNL’s Epanko project
has a JORC resource estimate (22.7Mt at 9.8% Total
Graphite Content (TGC) for 2.22Mt contained graphite) and
only covers 20% of the project area.
The Company is adequately funded to continue development
of the project over the next 12-24 months.
Favourable Industry Dynamics
The graphite market is comprised of natural graphite and synthetic
graphite and each has an estimated market size of 1.1Mtpa, with
natural graphite consumption expected to grow to 2.5-3.0Mtpa from
2016.
Important Disclosure
Investors should be aware that Black
Rock Mining Ltd is a corporate client of
Alpha and that Alpha will receive a
consultancy fee from Black Rock
Mining Ltd for compiling this research
report
Also, structural change in the Chinese graphite industry is causing
a drop in production. China is estimated to be currently producing
85% of the world’s natural graphite and is a major producer of both
flake and amorphous graphite. New stricter rules on graphite mining
introduced by the Chinese government, outlining higher
requirements for reserve size and to address environmental
concerns, has led to a significant number of mine closures.
1. INVESTMENT HIGHLIGHTS
1.1
Targeting Medium-to-Large Flake Graphite
BKT is targeting flake graphite, which is a syngenetic flake graphite (i.e. a less common form
of natural graphite) classified as medium-to-large flake ranging in size between 1.5mm and
8.5mm, based on metallurgical test work for Kibaran Resources’ Epanko Resource, that also
indicated a large-flake type of graphite that contains no detrimental impurities and is of high
purity.
While not the highest quality of natural graphite, flake graphite still commands a price
premium over amorphous graphite, which is the most common type of graphite and typically
used for lower-value products such as pencils, brake pads and rubber additives. Also, TGC
for flake graphite ranges from 5-12%, with recovery varying from 85-95% after refining.
An estimated 50% of world production comes from grades less than 6%.
Pricing for graphite products are generally negotiated directly between buyers and sellers
who settle through private contracts and vary according to flake size and purity. Larger flake
graphite command premium pricing, as it requires less processing to produce a high value
product. Jumbo flake size commands the highest premium and can trade up to five to 10
times the price of fine graphite flakes.
Table 1: Projected Increase in Graphite Pricing to 2020 by Flake Size
Source: Kibaran Resources Presentation, February 2015
1.2
Indicative Quality of Epanko Graphite
Metallurgical test work undertaken by KNL highlights that Epanko graphite is large flake and
has ‘expandability’ potential (i.e. suitable for further processing into expanded graphite),
which are the key attributes that command premium pricing in the graphite market.
Process test work conducted by KNL’s offtake partner (a European graphite trader) also
showed that washing of the concentrate via a simple one-stage process (hydrofluoric wash)
can generate ultra-high purity 99.9% graphite. This makes graphite in the Epanko region
amenable to a wide range of uses including graphite foil, an inert sealing material, and for
the expanded and spherical battery market.
Based on the conventional flotation processing applied by KNL in its case study, graphite
from the Epanko region is amenable to standard float recovery processes, achieving >96%
recovery.
Black Rock Mining Ltd (BKT)
Page 2 of 15
1.3
Potential End Markets for Epanko Graphite: EV Battery Market and
Building Market
The strong demand for flake graphite is underpinned new uses of graphite, especially in
lithium ion battery (LiB) industry, particularly for electric vehicles (EV) and home power
storage. LiBs for the EV market have the anode electrodes fabricated from a mixture of both
synthetic and spherical natural graphite to enhance cell performance; and are now being
used in hybrid electric vehicles (HEV), EVs and fuel cell vehicles (FCV) where the batteries
are large and hence the potential demand for quality graphite is very significant. An EV car
battery can require up to 50kg of graphite.
Battery demand for graphite currently represents 23% of global flake graphite demand, and
forecast to double in the next six years, while the electric vehicle market is projected to
grow 20% annually.
Only high quality flake or synthetic graphite which can be upgraded to 99.9% purity can be
used to make spherical graphite used as anodes in LiBs.
Three battery mega-factories (Tesla, LG Chem, Foxconn Technology) are expected to come
online in the next few years. Tesla (US) is commissioning a US$5 billion battery facility
(operational in 2016) to develop car battery and home storage battery technology. This is
expected to increase Tesla’s electric vehicle production from 35,000 vehicles to around
500,000 vehicles by 2020. The home power storage market has the potential for a larger
uptake in graphite consumption in comparison to electric vehicles.
Natural large flake graphite is required for the power output in both EV and FCV vehicles
and at present there are no substitutes, as spherical graphite within the LiB is the key
component required for the ability to transfer the energy. Synthetic graphite contributes to
the long cycle life of the battery.
In addition, demand for graphite from the thermally efficient building market using expanded
graphite foils (a premium-priced product) is potentially larger than the LiB market. The
increased demand is driven by new building codes, especially in Europe, that require
increased use of thermally-efficient building products.
1.4
Aggressive Development Pathway for Mahenge Graphite Projects
The key factors in commercialising a graphite operation are offtake agreements and
partnerships, and to this end, the industry has been traditionally small scale, hence there
has not been the need for large deposits. The average mine size is only 20-30,000 tonnes
per annum (tpa) of graphite concentrate.
Significant progress made by other ASX-listed companies with a focus on graphite
exploration in securing offtake agreements, as well as favourable project economics from
scoping studies (in particular KNL) bodes well for BKT, as the Company progresses
development of the Mahenge Graphite Project.
The market opportunity for BKT is underpinned by the additional graphite production and
processing plants that will be required for the expanding EV battery market, where the value
upgrade is in the order 3-4 times more than prices for graphite concentrate. KNL, which is
positioning itself to participate in the EV battery market, is developing production scenarios
based on the projected growth in this market, and is presently evaluating the feasibility of
a battery grade spherical graphite manufacturing facility in Tanzania that can directly supply
battery manufactures globally.
To this end, the proximity of BKT’s graphite projects (and any future manufacturing facility
in the surrounding region) to Dar Es Salaam port strategically positions BKT within reach of
key purchasing and processing markets for flake graphite, namely EU, China, South Korea
and Japan.
Black Rock Mining Ltd (BKT)
Page 3 of 15
Figure 1: Planned Development Timeline for Mahenge Graphite Projects
Exploration (Current)
Completed
Tenure Acquisition
Community Engagement
Commence Exploration
Complete maiden drill program
Immediate Focus
Commence Infill drilling (Jun ‘15)
Resource Delineation
Maiden Graphite JORC Resource
0-12 Months
Development
Construction &
Production
Metallurgical test work
Pre-feasibility/scoping study
Offtake marketing
Plant design, logistic, power, water
Environmental studies
Government approvals
Full feasibility study
Project Execution Plan
Financing
Construction
12-24 Months
24-36 Months
Source: Alpha Securities, Company Presentation March 2015
1.5
Tanzania is a Mining-Friendly Country
Tanzania is rated in the top four African countries for mining and mineral exploration and
has the 3rd largest gold industry in Africa. The Tanzanian Government is committed to mining
sector growth, with significant commercial mining activity in place, an extensive
infrastructure network (road, rail and ports) and access to a skilled and educated local
workforce.
Tanzanian graphite is considered high quality, containing the largest flake sizes in East
Africa. Previous graphite-producing operations in Tanzania include the Merelani Mine: 8.3%
TGC produced large flake, high grade commercial product.
Black Rock Mining Ltd (BKT)
Page 4 of 15
2. CORPORATE OVERVIEW
2.1
Background
The formation of the Company’s current asset base and strategic focus
on prospective graphite projects in Tanzania traces back to July/August
2014, when at that time, it entered into two option agreements to
acquire the Mahenge North Graphite Project and then the Mahenge
Graphite Project.
Both of these option agreements were exercised and in October 2014,
the Company announced that it entered into two further option
agreements over additional prospective graphite permits, one of which
remains under option, with the other option subsequently allowed to
lapse. The current leases within BKT’s portfolio include:
1. A 100% equity interest in The Mahenge North Graphite Project,
which consists of one granted Prospecting Licence (PL
7802/2012) covering an area of 292km2.
2. A 100% equity interest in The Mahenge Graphite Project, which
comprises three granted Prospecting Licences, covering an area
of 388km2. The largest of these is the Kituti prospect located
within the 208km2 Mahenge Southwest tenement (PL
10427/2014).
3. An option over five existing permits covering an area of 860km 2
for which the Company has secured the graphite mineral rights.
The option expires around June 2015, with the Company currently
undertaking legal and technical due diligence on these permits.
In order to implement the above-mentioned transactions, a number of
resolutions were approved by shareholders on 15 December 2014
including: i) Changing the nature and scale of the Company’s operations,
ii) A 1:20 share consolidation, iii) A capital raising (for which a Prospectus
was later issued) and iv) A change of name from Green Rock Energy Ltd
to Black Rock Mining Ltd.
2.2
Divestment of Non Core Interests and Projects
BKT has relinquished and surrendered (or is in the process of doing so)
previously-held assets of the Company, including hydrocarbon interests
in the North Perth Basin and geothermal interests in the Perth Basin.
The only remaining asset, which the Company is currently seeking to
divest, is an interest in a geothermal project (held via a joint venture) in
Hungary and an interest in the Ocean Hill oil and gas permit (divestment
of the latter is expected to be finalised at the end of June 2015).
The sale of a Perth Basin tenement to Eneabba Gas Limited has potential
to realise over $2m in shares and cash for BKT by the end of 2015.
Black Rock Mining Ltd (BKT)
Page 5 of 15
Figure 2: BKT Graphite Tenements in Mahenge
Source: BKT
3. OVERVIEW OF MAHENGE PROJECT (BKT: 100%)
3.1
Project Location and Infrastructure
The Mahenge Graphite Project is located 245 kilometres SW of the city
of Morogoro and 330 kilometres via sealed highway SW of Dar Es
Salaam, which is the largest city (population of ~3 million) and most
important economic region within Tanzania.
From Dar Es Salaam, the project site can be accessed by vehicle along a
sealed highway, via Morogoro, then a 122-kilometre track towards the
township of Ifakara and eventually, Mahenge village. The projects are
located close to the Mahenge township, which has easy access to power,
water, communications and hotel-style accommodation facilities.
The Mahenge North Graphite Project is situated 70 kilometres by road
from the nearest train line (TAZARA Line) at Ifakara, that also extend to
Dar Es Salaam.
Black Rock Mining Ltd (BKT)
Page 6 of 15
3.2
Local Geological Setting
The local geology at Mahenge was mapped by the Geological Survey of
Tanzania in 1962. Graphite mineralisation is generally found within
foliated gneiss, containing variable amounts of biotite and lesser
muscovite, often adjacent to clean crystalline units of marble. The district
is well known for its jewellery-quality gemstones and apart from
quarrying of marble, there are no significant mines for other resources
at Mahenge.
BKT’s licences are hosted within the Proterozoic Eastern Granulites and
centres over the Mahenge Synform, interpreted to be a tightly, polyphase sequence of marble, gneisses and schists of the Eastern
Granulites.
The potential of the Mahenge region to host large-scale graphite
mineralisation is underpinned by a number of stratigraphic horizons
totalling 50 kilometres in length that the Company has identified that are
highly prospective for graphite schist mineralisation as either outcrop or
under shallow cover.
Figure 3: Simplified local geological setting for the Mahenge
area
Source: ARC Resources P/L (Independent Geological Report);
Tanzanian Geological Survey
Black Rock Mining Ltd (BKT)
Page 7 of 15
3.3
Previous Exploration
Previous exploration at Mahenge North outlined two significant areas of
graphite mineralisation: Ndololo and Epanko North. Historic RC drilling
and rock chip sampling confirmed the presence of large flake moderate
to high-grade graphite mineralisation with favourable metallurgical
properties.
Within the Mahenge Graphite Project, three bands of graphite schists
have been mapped, with strike lengths of 3,500 metres, 1,500 metre
and 900 metres, respectively, and mapped widths ranging from 90
metres to 400 metres.
The projects are significantly underexplored for graphite mineralisation,
with the only noted early exploration having been conducted in the 1940s
at the Ndololo prospect, which reported results of 15.75% graphite and
95.7% recovery. Metallurgical work undertaken recently completed
verified these exploration results and confirmed the potential for a
premium coarse flake size product.
Results from more recent exploration work (rock chip sampling, mapping
and RC drilling) undertaken by Kibaran Resources between May 2012
and March 2013 have not been located. However, Kibaran Resources
completed a RC drilling program (21 holes, 2,520 metres) at four
prospects in the Mahenge North Graphite Project: Kasita, Ndololo
Western, Ndololo Central and Ndololo Eastern, and encountered high
grade graphite intersects at the Ndololo Eastern prospect, notably 13
metres @ 10.8% TGC and 11 metres @ 11.2% TGC.
3.4
Exploration Undertaken by BKT
BKT commenced exploration at Mahenge in July 2014, following the
acquisition of the Mahenge North Graphite Project. The initial exploration
undertaken by BKT identified four priority zones, with each zone
considered to have the potential to host over >10Mt of graphite ore. The
intitial four zones identified were:
1. Epanko North, the northern extension of Kibaran Resources’
(ASX: KNL) Epanko orebody,
2. Kututi (Mahenge Southwest),
3. Cascade (Mahenge North) and
4. Ndololo (Mahenge North).
By December 2014, BKT had completed mapping, sampling and
trenching at Epanko North, mapping and trenching at Ndololo and
trenching in the Kituti prospect to test for grade and continuity of
mineralisation.
Following on from Kibaran Resources encountering high grade intersects
at the Ndololo Eastern prospect, rock chip sample taken by BKT confirm
the presence of high grade graphite at Ndololo, hence BKT’s earlier focus
on the Ndololo prospect.
The best trenching results at Epanko North included:



Black Rock Mining Ltd (BKT)
Page 8 of 15
56 metres @ 11.58% TGC from start (including 22m @ 13.35%
from 6m and 20m @ 14.9% TGC from 33m),
25m @ 10.03% TGC from start (including 7m @ 17.12% TGC
from 5m) and 9m @ 14.03% TGC from 16m),
74m @ 9.91% TGC from 22m (including 48m @ 11.18% TGC
from 30m) and

3.5
98m @ 7.47% TGC from start (including 60m @ 10.71% TGC
from start)
Completion of Maiden Drilling Program at Mahenge
On 10 January 2015, BKT commenced a 16-hole diamond and Reverse
Circulation (RC) program at Epanko North, with a total of 2,200 metres
of drilling completed at Mahenge by late February. In addition to drilling
at Epanko North, two diamond drill hole were drilled at the Kituti
prospect.
Results from the maiden drilling program, which was conducted as a
follow up to the mapping and trenching program completed in December
2014, and scheduled to finish prior to the main annual wet season (March
to May), were released to the ASX on 31 March 2015.
Drilling at Epanko North confirmed significant zones of graphite
mineralisation. In addition, the drilling indicated wider zones of graphite
mineralisation (vertical widths exceeding 200 metres for 600 metres of
strike) than that indicated from mapping undertaken in December 2014.
A total of 1,114 samples have been submitted for assay, with assay
results expected in in the current quarter.
Figure 4: Diamond drill core (64mm) from DD01
at Epanko North showing coarse flake graphite
0.5mm to 2mm flakes
Source: ASX Announcement 31 Mar 2015
Black Rock Mining Ltd (BKT)
Page 9 of 15
Figure 5: Epanko North Drill Plan
(Source: ASX Announcement 31 Mar 2015)
3.6
Extending Work to Include Kituti and Cascade Prospects
In conjunction with the planned infill drilling program, additional
trenching work will be undertaken at the Kituti and Cascade prospects,
with further planned drilling at Kituti.
The Kituti prospect is a new discovery identified and mapped in 2014,
interpreted to be 18 kilometres in length, of which a 6km-strike of
graphite mineralisation has been rock chip sampled and mapped. The
prospect has narrower widths than Epanko, but with visibly coarser flake
graphite observed. One rock chip sample returned grade of 12.15% TGC.
The Cascade prospect is also a new discovery, containing unusually wide
zones of graphite mineralisation (1km strike x 200-400 metre width).
One trench excavated to date yielded good graphite. The follow up work
currently underway includes detailed mapping of the lode structure in
order to determine surface geometry, strike extent and grade.
Figure 6: Current Area of Trench Sampling at Kituti
Prospect
Figure 7: Location of Cascade Prospect Relative to Epanko
North Trench Area and Kibaran Resources’ Epanko
orebody
Source: Company Presentation March 2015
Source: Company Presentation March 2015
Black Rock Mining Ltd (BKT)
Page 10 of 15
4. OTHER ASX-LISTED GRAPHITE EXPLORATION
COMPANIES IN TANZANIA
Aside from Kibaran Resources, there are two other ASX-listed companies
that have Tanzanian-based graphite tenements, all of which are further
advanced in their exploration activities than BKT (note that BKT has only
recently entered the space). These companies are IMX Resources (ASX:
IXR) and Magnis Resources (ASX: MNS). As such, the purpose of this
section is to highlight the future pathway for BKT as it seeks to progress
development of the Mahenge Graphite Project.
Subject to obtaining a JORC Resource Estimate, the key areas BKT is
likely to focus on are scoping studies and securing offtake agreements,
which will benefit project financing and validate the project’s viability.
4.1
Kibaran Resources
In August 2014, KNL delivered an updated scoping study based on a
modest 420,000t throughput operation producing 40,000tpa of high
value graphite flake concentrate and yielded strong project economics
with an EBITDA margin of 51%. KNL also has binding off-take agreement
and partnership for graphite sales. The offtake agreements in place are
for 30,000tpa for 10 years, comprising 20,000tpa Letter of Intent with
ThyssenKrupp and a 10,000tpa offtake with a sophisticated European
graphite market trader.
KNL has also commenced discussions with traders and end-users in
different markets (Japan and US) for further graphite offtake agreements
and is aiming to fast track development, with a final feasibility study
already underway.
4.2
IMX Resources
IXR recently released a maiden inferred mineral resource for the Shimba
deposit at its Chilalo graphite project. The inferred resource for Shimba
stands at 7.4Mt @ 10.7% TGC, for 792,000t of contained graphite.
A prefeasibility study at Chilalo is expected to begin this quarter and IXR
has also completed a placement in order to advance the project.
4.3
Magnis Resources
MNS has secured an offtake agreement for 100% of production through
agreements with Chinese state owned industrial conglomerate SINOMA
for 80,000tpa over a period of five years and Sinosteel for 100,000tpa
over 10 years.
Black Rock Mining Ltd (BKT)
Page 11 of 15
Table 2: Peer Table for ASX-Listed Graphite Explorers, with JORC Resource Estimates producing flake-type
graphite
Company Name
Mkt
Cap
($m)
JORC Resource Estimate
Size
Grade Contained
(TGC)
Graphite
Syrah Resources (SYR)
Triton Minerals (TON)
Magnis Resources (MNS)
Valence Industries (VXL)
Talga Resources (TLG)
Kibaran Resources (KNL)
Lamboo Resources (LMB)
Sovereign Metals (SVM)
Lincoln Minerals (LML)
Archer Exploration (AXE)
IMX Resources (IXR)
627.8
139.8
75.3
54.6
48.0
23.4
13.9
12.5
10.7
7.6
7.4
1.15Bt
1.457Bt
156Mt
3.21Mt
7.6Mt
22.7Mt
7.13Mt
86Mt
2.2Mt
8.55Mt
7.4Mt
10.2%
10.7%
5.2%
11.5%
24.4%
9.8%
4.7%
7.1%
15.1%
9.0%
10.7%
117Mt
93Mt
104Mt
1.85Mt
2.22Mt
6.13Mt
0.332Mt
0.77Mt
0.79Mt
Project and
Location
Project
Stage
Balami, Mozambique
Mozambique
Nachu, Tanzania
Uley, SA
Vittangi, Sweden
Epanko, Tanzania
McIntosh, WA
Duwi, Malawi
Kookaburra Gully, SA
Eyre Peninsula, SA
Chilalo, SE Tanzania
Feasibility
Advanced Exploration
Bank Feasibility
Feasibility/Early Production
Advanced Exploration
Advanced Exp/Feasibility
Advanced Exploration
Advanced Exploration
Exploration
Exploration
Advanced Exp/PFS
Source: Alpha Securities, Company Reports
*(Market Data as at 27 April 2015)
5. FUNDING AND CAPITAL STRUCTURE
5.1
Funding
The cash balance as at 31 December 2014 was $1.22 million, which was
subsequently boosted by $3.5 million raised under the Prospectus. The
majority of these funds are expected to be used for the exploration
program in Tanzania and working capital purposes, with the funding
position also supported by the receipt of ~$0.46m in March 2015 from a
loan repayment.
In addition, BKT has secured firm commitments for a further ~$0.5m
from investors whose allocations were scaled back in the prior share
placement as a result of the Prospectus closing 25% oversubscribed.
As such, the Company has adequate funding to support exploration
activities over the next 12-24 months, although BKT may have to raise
further funds as work progresses further (for example metallurgical test
work, pre-feasibility or scoping studies).
BKT has access to further funding after the Company entered into an
agreement in October 2014 with ASX-listed company Eneabba Gas Ltd
(ASX: ENB) to sell its interest in the Ocean Hill oil and gas permits. The
expected proceeds are around $2.1 million, including the sale of BKT’s
shareholding of 40 million shares in ENB, currently worth $1.8 million1
and a cash receipt of $330,000 (of which $30,000 has already been
received). The sale is expected to be completed by 30 June 2015.
1
Based on ENB’s share price of 4.5 cents at the time of writing.
Black Rock Mining Ltd (BKT)
Page 12 of 15
5.2
Capital Structure
The Company has a total of ~197 million shares on issue following the
issue of 70 million shares under the Prospectus, which also included the
issue of 35 million listed options (exercisable at 5 cents per share with
an expiry date of 20 March 2017). In addition, there are ~3.9 million
existing unlisted options under issue, with expiry dates ranging from
November 2015 to January 2018. All of the unlisted options are currently
out-of-the-money.
The additional shares and options issued under the Prospectus are
subject to approval at a shareholder meeting to be held in early May
2015.
The share registry is tightly held, with the top 20 shareholders
accounting for nearly 55% of the total shares on issue. The cornerstone
investor is Copulos Group, an entity controlled by Non Executive Director
Stephen Copulos, with a 25% shareholding, including associated entities.
This underpins a strong alignment of interests between the Board and
shareholders, with the directors (including associated entities)
collectively holding around 27% of the total shares on issue.
The second largest shareholder is ASAB Resources (4%), the previous
owners of the Prospective Licences in Tanzania.
Table 3: BKT Current Capital Structure
Shares/Options on Issue
Million
Ordinary Shares
196.9
Listed Options (exercisable @ 5c)
Unlisted Options (exercisable @ 40c)
Unlisted Options (exercisable @ 16c)
Unlisted Options (exercisable @ 6c)
Unlisted Options (exercisable @ 20c)
Performance Rights
35.0
0.095
0.1
0.375
3.3
6.7
Source: Alpha Securities, Company Reports
Black Rock Mining Ltd (BKT)
Page 13 of 15
Exp. Date
20-Mar-17
15-Nov-15
11-Jun-16
28-Nov-16
19-Jan-18
31-Dec-17
6. BOARD OF DIRECTORS
DIRECTOR
BACKGROUND
Stephen Copulos
Non Executive Chairman
Mr Copulos was appointed to the Board in January 2015 and is the
Company’s major shareholder and major financial supporter. He is
an active global investor and has over 30 years’ experience in a
variety of businesses and investments, including mining,
manufacturing, property development, Fast food and hospitality.
Interest in BKT:
(Including Associated Entities)
~50.0m ordinary shares
Listed options:
15.0m @ 5c
exp 20/3/2017
Unlisted options:
~1.3m @ 6c
exp 19/1/2018
Performance Rights:
1.675m
exp 31/12/2017
Steven Tambanis
Managing Director
Interest in BKT:
2.0m ordinary shares
Listed options:
1.0m @ 5c
exp 20/3/2017
Performance Rights:
3.35m
exp 31/12/2017
Gabriel Chiappini
Non Executive Director
Interest in BKT:
750,000 ord shares
Listed options:
0.25m @ 5c
exp 20/3/2017
Unlisted options:
75,000 @ 6c
exp 28/11/2016
Performance Rights:
1.675m
exp 31/12/2017
Black Rock Mining Ltd (BKT)
Page 14 of 15
Mr Copulos has been the Managing Director of the Copulos group of
companies (a private investment group) since 1997 and has over
15 years’ experience as a director of both listed and unlisted
companies in Australia, UK and US.
He is currently Non Executive Chairman of ASX-listed company
Crusader Resources.
Mr Tambanis was appointed to the Board in January 2015 after
joining Black Rock Mining Ltd as Managing Director. Mr Tambanis is
a geologist, with extensive commercial and operational experience
gained within small and large exploration companies, corporate
banking and broking.
He also has significant experience working in ASX-listed mineral
companies, including business development roles at WMC
Resources and Goldminex Resources Ltd, where he held the position
of Executive Director.
He is currently on the Board of West African Gold Ltd, an unlisted
mineral exploration company and over the past three years, Mr
Tambanis has managed all aspects of that company’s exploration
activities, operations and administration, including the execution of
a significant joint venture with ASX-listed gold miner, Perseus
Mining Limited (ASX:PRU).
Mr Chiappini has over 20 years’ experience in the commercial
sector, and notably, over the last 13 years, he has held directorships
and senior executive roles with both public and private companies
with operations in Australia, UK and US. Mr Chiappini is currently
Non-Executive Chairman of ASX-listed company Dromana Estate
Ltd (ASX: DMY) and Company Secretary of numerous ASX listed
companies.
He has assisted a number of companies list on the ASX and has also
provided advice and services on equity raisings exceeding A$300
million, as well as assisting clients with both divestment and
acquisition strategies.
For the last eight years, Mr Chiappini has managed his own
consulting company (Laurus Corporate Services), which provides
ASX, Director and Company Secretarial advice to ASX-listed
companies.
DIRECTORY – ALPHA SECURITIES
Corporate
George Karantzias
[email protected]
0401 670 620
Research Analyst
John Haddad
[email protected]
0407 219 222
Disclaimer
This document has been prepared (in Australia) by Alpha Securities Pty Ltd ABN 94 073 633 664
(“Alpha”), who holds an Australian Financial Services License (License number 330757). Alpha has
made every effort to ensure that the information and material contained in this report is accurate and
correct and has been obtained from reliable sources. However, Alpha makes no representation and
gives no warranties about the accuracy or completeness of the information and material, including any
forward looking statements and forecasts made by Black Rock Mining Ltd to Alpha, and it should not
be relied upon as a substitute for the exercise of independent judgment.
Except to the extent required by law, Alpha does not accept any liability, including negligence, for any
loss or damage arising from the use of, or reliance on, the material contained in this report, or as a
result of errors or omissions on the part of Alpha or by any of their respective officers, employees or
agents.
This report is for information purposes only and is not intended as an offer or solicitation with respect
to the sale or purchase of any securities. The securities recommended by Alpha carry no guarantee
with respect to return of capital or the market value of those securities. There are general risks
associated with any investment in securities. Investors should be aware that these risks might result
in loss of income and capital invested. Neither Alpha nor any of its associates guarantees the repayment
of capital.
This report and any communication transmitted with it are confidential and are intended solely for the
use of the individual or entity to which they are addressed. If you have received this email in error
please notify the sender. If you no longer wish to receive communication from Alpha, please contact
Alpha requesting to be unsubscribed from future communications.
General Advice Warning
This report may contain general securities advice or recommendations, which, while believed to be
accurate at the time of publication, are not appropriate for all persons or accounts. This report does
not contain specific securities advice and does not take into account particular investment objectives,
financial situation and needs of any particular person. You should carefully assess whether such
information is appropriate in light of your individual circumstances before acting on it.
Disclosure
Alpha, its Directors and associates declare that they may have a relevant interest in the securities
mentioned herein. This position can change at any time. Alpha also receives fees for advisory services.
Alpha does and seeks to do business with companies covered in its research reports and
investors should be aware that Alpha received a consultancy fee from Black Rock Mining Ltd
for compiling this research report.
Black Rock Mining Ltd (BKT)
Page 15 of 15