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(Alliance News) - Blencowe Resources PLC on Tuesday said it completed the acquisition of a graphite project in Uganda for GBP2 million in shares.
Shares in the natural resources-focused investment vehicle were suspended, pending completion of transaction. Now the deal has got over the line, it has returned to trading.
The stock ended 56% higher at 7.00 pence in London on Tuesday.
Back in October, Blencowe signed a share purchase agreement with Consolidated Africa Ltd and New Energy Minerals Africa Pty Ltd to buy Consolidated African Resources (Uganda) Ltd in a reverse takeover.
CARU is a Ugandan registered company which owns the Orom-Cross graphite project in northern Uganda.
"The Orom-Cross Graphite Project is a potential world class graphite project both by size and end-product quality," Blencowe noted on Tuesday.
Blencowe will issue 25.0 million shares to Consolidate Africa and 8.3 million shares to New Energy at 6p each.
Executive Chair Cameron Pearce said: "We are delighted to have successfully completed the transaction and look forward to rapidly building value by advancing the Orom-Cross graphite project in northern Uganda. The graphite sector places a premium value on the flake sizes that we have at Orom and we believe the mining operation will be well positioned in the lowest quartile on the cost curve."
By Eric Cunha; ericcunha@alliancenews.com
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