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Placing to Raise £635,000

18 May 2023 07:46

RNS Number : 8628Z
Blencowe Resources PLC
18 May 2023
 

Date: 18 May 2023

Blencowe Resources Plc

("Blencowe" or the "Company")

 

Placing to Raise £635,000

 

Blencowe Resources Plc ("Blencowe Resources" or the "Company") (LSE: BRES), the natural resources company focussed on the development of the Orom-Cross Graphite Project in Uganda, is pleased to announce that it has raised £635,000 at 5 pence per share ("Placing") through the issue of 12,700,000 new ordinary shares of 0.5p ("Placing Shares"). The Company will issue investors in the Placing with 1 warrant per 2 Placing Shares (Investor Warrants") which are exercisable at 8p for a period of 3 years from Admission of the Placing Shares.

Use of Funds

The net proceeds of the Placing will be used to maintain momentum on the Definitive Feasibility Study ("DFS") work, which has been underway since start of 2023, and is managed by leading firm CPC Engineering.

The Company recently announced it had passed the key screening hurdles by the Development Finance Corporation ("DFC") regarding a US$4.5M Technical Assistance Grant ("TAG") to fund 50% of the DFS. The Company expects to complete the process of obtaining the TAG with DFC over the coming weeks and then be able to draw down funds for the DFS work. The net proceeds allows the Company to avoid any immediate delay to the DFS programme whilst the DFC grant is being finalised.

In parallel, the Company awaits results from its metallurgical testing programs in both China and the United States of America. In January 2023 the Company delivered 20kgs of concentrate to technical experts in Wuhan University of Technology in China and 5kgs to American Energy Technologies Co. for SPG and expandables testing. A further 100 tonnes bulk sample has been extracted and is in transit to Jilin Huiyang New Material Technology Company, with results expected to reconfirm historic results of IMO testing in Perth, which demonstrated concentrates from Orom-Cross is of consistently high quality. The net proceeds will enable the Company to accelerate these discussions.

Related Party Transaction

RAB Capital, Jangada Mines plc and JUB Capital are considered related parties on the basis their respective holdings are greater than 5%. The major shareholders participated in the Placing which is deemed a related party transaction as defined under DTR 7.3. The Board considers their participation in the Placing are fair and reasonable insofar as the Company's shareholders are concerned having taken financial advice from its financial adviser Tavira Financial Ltd given the Board does not have an independent director.

Major Shareholder

Placing Shares

% of the Placing

Jangada Mines plc

2,000,000

15.7

RAB Capital

1,500,000

11.8

JUB Capital

800,000

6.3

 

Admission

An application has been made for 12,700,000 Ordinary Shares to be admitted to trading on the official list and the London Stock Exchange from 8.00 a.m. on 23 May 2023 ("Admission").

 

In accordance with the FCA's Disclosure Guidance and Transparency Rules, the Company confirms that following Admission, the Company's enlarged issued ordinary share capital will comprise 209,379,950 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury. Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA's Disclosure Guidance and Transparency Rules.

 

Cameron Pearce Executive Chairman commented:

 "We are very pleased to secure additional funding to continue the DFS work programmes without delay. The DFC grant should be completed in the near future and the Company is focused on maintaining the momentum to optimise the benefits of this.

Securing the support of a tier one financial institution such as the DFC provides the Project and our Company with a high degree of credibility and we are working through the process with the DFC so that they may formally join as our partner on the balance of the DFC work.

At the same time we are making progress on our metallurgical studies in China and the US, with initial results expected in the near term. A favourable outcome in the test work has the potential to ultimately provide a funding solution for Orom-Cross to first production.

I look forward to providing further updates in the coming weeks."

 

For further information please contact:

 

 

Blencowe Resources Plc

Sam Quinn

 

 

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Investor Enquiries

Sasha Sethi

 

Tel: +44 (0) 7891 677 441

Email: sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

 

Tel: +44 (0)20 3192 1733

jonathan.evans@brandonhillcapital.com

 

First Equity Limited

Jason Robertson

 

Tel: +44 (0)20 7330 1883

jasonrobertson@firstequitylimited.com

Twitter https://twitter.com/BlencoweRes

LinkedIn https://www.linkedin.com/company/72382491/admin/

 

Background

Orom-Cross Graphite Project

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger coarse flakes within the deposit.

A 21-year Mining Licence for the Project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit and Blencowe completed a successful Pre-Feasibility Study in 2022. The Company has now moved into the Definitive Feasibility Study phase as it drives towards first production.

Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content, with only a small percentage of the overall deposit drilled to date. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

 

 

 

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MSCSFFSMAEDSELI
Date   Source Headline
14th Jun 20247:00 amRNSHalf-year Report
10th Jun 20247:00 amRNSFirst offtake for 15,000 tonnes
3rd Jun 20247:00 amRNSCorporate Presentation Updated
28th May 20249:00 amRNSCEO Video Interview
15th Apr 20247:00 amRNSBulk Sample Update
10th Apr 20247:00 amRNSReceipt of Third Tranche from DFC
26th Feb 20248:52 amRNSResult of AGM
9th Feb 20247:00 amRNSSubscription & Conditional Subscription - Replace
6th Feb 20247:00 amRNSSubscription & Conditional Subscription
31st Jan 20247:00 amRNSAnnual Financial Report
29th Jan 20247:00 amRNSDFC LOI Regarding Project Financing
25th Jan 20247:00 amRNSReceipt of further $1m Tranche from the DFC
2nd Jan 20247:00 amRNSProject Update
11th Dec 20237:00 amRNSDFS Update
30th Oct 20237:00 amRNSSPG Test Work Completed
10th Oct 202312:16 pmRNSReceipt of $1m Grant First Tranche from DFC
22nd Sep 20237:05 amRNSCorporate Presentation
22nd Sep 20237:00 amRNSDFC Grant Completed
4th Sep 20237:00 amRNSBulk Sampling Completed
23rd Aug 20237:16 amRNSHolding(s) in Company
14th Aug 20237:57 amRNSBulk Sampling Update & China Visit
18th Jul 20237:00 amRNSWarrants Update
22nd Jun 20231:49 pmRNSCEO Interview
19th Jun 20237:00 amRNSMetallurgical test work results
2nd Jun 20237:00 amRNSHalf-year Report
24th May 20238:59 amRNSHolding(s) in Company
18th May 20237:46 amRNSPlacing to Raise £635,000
9th May 20237:00 amRNSWebinar Today
2nd May 20237:11 amRNSInvestor Webinar & Updated Presentation
27th Apr 20233:22 pmRNSStrategic Funding Partner for Orom-Cross
18th Apr 20237:00 amRNSWarrant Expiry Extension
2nd Mar 20237:49 amRNSResearch Note
27th Feb 20237:00 amRNSBulk Sampling Complete
15th Feb 202310:17 amRNSResult of AGM
23rd Jan 20237:00 amRNSAppointment of Leading Engineering Firm to DFS
16th Jan 20237:00 amRNSFinal Metallurgical Testing Programs
13th Jan 20237:00 amRNSAnnual Results 30 September 2022 & Notice of AGM
11th Jan 20234:40 pmRNSSecond Price Monitoring Extn
11th Jan 20234:35 pmRNSPrice Monitoring Extension
11th Jan 20237:00 amRNSExport Approval for Bulk Samples
6th Dec 20227:00 amRNSMetallurgical Test Work Update
17th Nov 20229:00 amRNSPrice Monitoring Extension
27th Oct 202211:10 amRNSIssue of Options
26th Oct 20227:00 amRNSStrategic Investment
24th Oct 20224:41 pmRNSSecond Price Monitoring Extn
24th Oct 20224:36 pmRNSPrice Monitoring Extension
6th Oct 202212:45 pmRNSWebinar Call
3rd Oct 20229:06 amRNSSecond Price Monitoring Extn
3rd Oct 20229:00 amRNSPrice Monitoring Extension
3rd Oct 20227:00 amRNSStrategic Party

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