Once you've downloaded the archive from the primary site Metalab you put the archive in your home directory (or wherever you prefer) and unpack it by saying
tar -xzvf blackpenguin-0.2.tar.gz.
Type make in the src directory to build the application.

When you built the application (or downloaded and unpacked the binary) you just copy/move the file 'blackpenguin' to a directory of your taste. That's all. Have a look where games are located on your system, /usr/local/games might be a good choice. The directory chosen must be in your system's path.

The game runs under X11. To start the game, you can say blackpenguin & in a terminal window or include it in your windowmanager's menu system.