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(Alliance News) - Blencowe Resources PLC on Tuesday said its loss widened in the first half of financial 2020, which ended shortly before the takeover of Consolidated African Resources (Uganda) Ltd.
The miner's pretax loss for the six months ended March 31 was GBP481,752, widening from GBP82,973 loss the year before. Loss in both periods resulted entirely from administrative fees and other expenses.
The results do not reflect the reverse takeover of Consolidated African Resources Uganda, which was completed on April 28.
Consolidated African Resources owns the Orom graphite project in northern Uganda and was bought for GBP2 million in shares. In conjunction with this, Blencowe also raised GBP2 million from a placing and subscription.
"The balance sheet at 31 March shows net liabilities of GBP177,000 as a result of the expenditure incurred in connection with the transaction. The issue of shares for cash and to acquire CARU restored the company to a positive net asset position, and the company is now well funded to meet the next stage of its development plans," the interim management report read.
Shares in Blencowe were untraded on Tuesday, having last closed at 8.25 pence.
By Anna Farley; annafarley@alliancenews.com
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