TSI.L Regulatory News (TSI)

13 December 2017

Blenheim Natural Resources Plc ('Blenheim' or 'the Company')

Notice of GM

Blenheim Resources, the AIM-quoted resource investment company, is pleased to announce that it has today posted a Notice to Shareholders convening a general meeting. The meeting is primarily to seek shareholders' approval of resolutions necessary to facilitate the Company's acquisition of up to 49% of Cobalt Blue Holdings Inc ("CBH"), a company with interests in cobalt exploration primarily in Cameroon, announced on 30th November 2017. The meeting is scheduled for 12 noon on Wednesday 17 January 2018 at 4th Floor, 40 Queen Street, London EC4R 1DD, and the full document is also available on www.www.blenheimnaturalresources.com.

Overview:

· CBH has the potential to provide the Company with what the directors believe to be an exceptional portfolio in a primary cobalt nickel region. 

· The Nkamouna and Mada cobalt-nickel deposits, which are surrounded by CBH licences, form one of the world's largest known primary cobalt deposits, with significant nickel and manganese credits. 

· Underlining the licences prospectivity, independent studies have consistently concluded that the Nkamouna and Mada project can be developed with globally competitive capex, opex and investment returns.

· Geovic commissioned a report by SRK on Nkamouna in 2011, which reported that 59.8 million tonnes (Mt) were identified in the relevant area grading an average of 0.24% cobalt, 0.68% nickel and 1.37% manganese classified as Measured Mineral Resources with an additional 60.8 Mt grading an average of 0.22% cobalt, 0.62% nickel and 1.32% manganese classified as Indicated Mineral Resources.

· The acquisition involves the issuance of the Consideration Warrants to CBH as follows: (i) 300m warrants with a 0.1p exercise price and (ii) 250m shares warrants at 0.65p exercise price giving a total of 550m shares (Fuller details are available in the Company's announcement of 30 November 2017).

· Following negotiation, Blenheim has agreed that the 0.1p warrants are subject to a 12-month lock in period from the date of the grant. The Board believes this is a statement of commitment from CBH to the development of both the cobalt projects as well as their belief in Blenheim's lithium assets and blockchain investment.

· Additionally, Blenheim has a conditional Call Option, valid for 6 months, which allows it to increase its stake in CBH to 49% for cash of £800,000 ("Cash consideration"). If the Call Option is exercised by the Company, the entire Cash Consideration of £800,000 will be utilised to fund exploration costs for the licences.

· This acquisition of the CBH stake is a key part of Blenheim's strategy to make investments in technology metal related opportunities and is complementary to its current assets.

Blenheim's Chairman Chris Ells said, "We believe this transaction with Cobalt Blue Holdings Inc to be an excellent opportunity for Blenheim Resources to gain exposure to highly prospective cobalt and nickel asset, both metals in high demand. We are excited by the potential future value of the licences in Cameroon, especially given their proximity to the proven and significant Nkamouna cobalt project. There is an increasing demand for cobalt. In 2017 the price has increased by 120% and we are confident that these strong market dynamics will continue as new battery technologies and the rising demand for electric vehicles increases the necessity for the metal."

"On the deal structure, I believe it is important to point out that based on an assumed share price of 0.65p, the gross cost of the 25% investment in CBH Blue is £3.575m. Assuming the exercise of all 550m Warrants, which will release the shares, Blenheim would receive a cash injection of £1.925m which is equivalent to the net investment of these licences, satisfied in stock (estimated value £1.65m). Additionally, we have renegotiated the terms, initially announced, to include the 12-month lock in period for the 300m 0.1p warrants. We believe that this underlines CBH's commitment to the future of Blenheim, its investment strategy and future development plans both in cobalt, lithium and blockchain development."

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

**Ends**

For further information please visit www.blenheimnaturalresources.com contact:

Notes to Editors:

Blenheim Natural Resources Plc (AIM : BNR) is an investment company, quoted on the AIM market of the London Stock Exchange, with a strategy focused on identifying and investing in opportunities in mineral exploration and mining, as well as technology associated with the natural resources sector.