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BlackEarth Minerals (ASX: BEM) delivers an excellent March quarter, marked by exciting graphite developments

Summary

  • BlackEarth signed landmark agreements with Global EV players concerning sourcing and supply of its graphite products.
  • The results from Stage 2 large scale pilot plant program makes Maniry Graphite product some of the world’s highest value graphite concentrate.
  • BlackEarth wrapped up a heavily oversubscribed placement, raising more than A$4.89 million.

BlackEarth Minerals NL (ASX:BEM) recorded an upbeat March Quarter, thanks to its series of corporate and operational undertakings bolstering its position in the global EV market. During the quarter ended 31 March 2021, the broad range of initiatives extended from large scale Maniry Pilot test work through to airborne electromagnetic survey and strategic partnerships with globally significant EV players.

ALSO READ: Why is BlackEarth Minerals Poised to Excel in the Battery Market?

Subsequent to the Quarter-end, the Company completed a heavily oversubscribed Share Placement, raising more than A$4.89 million.

BlackEarth continues its partnerships with the local communities in both Madagascar and Australia, and has been providing the local Madagascan community with ongoing support.

As at 31 March 2021, BlackEarth had more than A$2.55 million which further boosted to A$7 million at 27 April 2021. The firm financial footing positions the Company to further its growth aspirations this year.

ALSO READ: BlackEarth Minerals (ASX:BEM) Going from Strength to Strength in Graphite Space

Source: BEM ASX Update, dated 28 April 2021

Large Scale Pilot Plant Program

The preliminary results from the Stage 2 large scale pilot plant program were released during the Quarter.

The highlights from initial results include:

  • It confirmed over 95% Fixed Carbon (FC) grades result from Stage 1 earlier, reaffirming the attractiveness of Maniry’s graphite product for downstream processing and feed for EV markets.
  • Further analysis of the jumbo and large flake size demonstrated that a high proportion of graphite concentrate yields are classified as jumbo flake size. Such product is in worldwide shortage and currently commands sales price of more than US$1,750/mt

DETAILED DISCUSSION AT: BlackEarth Minerals (ASX:BEM) buoyed up on promising graphite results  

Subsequent to the quarter end, additional premium high-grade results were confirmed from the pilot test.

Source: Copyright © 2021 Kalkine Media Pty Ltd, Data Source: BEM ASX update, dated 28 April 2021

Concentrate testing for more than 80% of the jumbo and large flake product returned an average FC level of 96.77%. It makes Maniry Graphite product some of the world’s highest value graphite concentrate.

READ MORE: BlackEarth unveils high-grade results from Maniry graphite pilot program

The Company anticipates the completion of the processing in late May 2021 and conclusion of a final report in early July 2021.

Western Australia tenements – Donnelly River

During the Quarter, the Company’s sampling of prospective Ni Cu targets identified several strong trends across the southern half of the Donnelly River Ni-Cu-PGM Project. The assay results confirm strong mafic-ultramafic signature presence across at a minimum of three prominent magnetic trends.

The Company intends to follow up similar magnetic trends identified across the property.

Source: BEM ASX Update, dated 28 April 2021

Down-stream processing Opportunities

During the Quarter, BlackEarth continued ongoing discussions world-wide in relation to their down-stream processing strategy with plans being further advanced. These plans included the assessment of market demand for expandable graphite and products complementary to the growing demand for development of green energy. The Company also completed a number of production and valuation assessments.

Casting an eye on BEM’s Corporate Endeavours

MOU with Urbix Resources

BlackEarth signed an MOU (Memorandum of Understanding) with Urbix Resource Inc (USA), a globally recognised graphite purification processor that can develop specialised graphite product for the global EV market.

In the short term, BlackEarth intends to supply samples of its premium grade concentrate to Urbix for further testing and refinement. A longer-term plan of BEM involves becoming a supplier of concentrate to Urbix and a proposed joint venture for producing downstream products to meet the processed graphite demand.

READ MORE: BlackEarth Minerals shares rocket 117% on Urbix deal

Source: BEM ASX Update, dated 28 April 2021

Sales and marketing distribution agreement with LuxCarbon

The Company struck a graphite supply and marketing agreement with German-based LuxCarbon, which is a globally leading graphite supply chain group.

The marketing and sales components of the Agreement provide BlackEarth with the prospect to supply its refined product to EV manufacturers and interrelated industries, requiring expanded and purified graphite products.

READ MORE: BlackEarth Minerals (ASX:BEM) Share Price Balloons 139% on Luxcarbon Deal

Placement subsequent to the Quarter end

On 12 April 2021, BlackEarth wrapped up a heavily oversubscribed placement. The Share Placement raised more than A$4.89 million, with BEM shares issued at A$0.135 per share. The receipt of funds has strengthened liquidity position of the company, at A$7 million as on 27 April 2021. Further, on the back of firm financial footing, BlackEarth is positioned well to complete its DFS and conclude several 2021 exciting plans.

READ MORE: BlackEarth Minerals (ASX:BEM) raises $4.9M to amp up its graphite project

BEM shares traded at A$0.145, up by ~3.571% from the previous close on 29 April 2021.

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