REG - Blencowe Resources - Fundraise of £1m to support completion of the DFS

Blencowe ResourcesAnnouncement

15/04/2025 16:45

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RNS Number : 1574F  Blencowe Resources PLC  15 April 2025

15 April 2025

Blencowe Resources Plc

("Blencowe" or the "Company")

 

Fundraise of £1m to Support Completion of DFS

Strategic Progress Continues with Full Phase 1 Offtake Secured, DFS Advancing

Blencowe Resources Plc (LSE: BRES), is pleased to announce that it has
successfully raised gross proceeds of £1m through the issue of 33,333,334 new
ordinary shares at a placing price of 3 pence per share (the "Placing"). The
Placing was undertaken by Tavira Financial Limited, the Company's broker.

Use of Proceeds

The net proceeds of the Placing will primarily be used to complete the 6,750m
drilling programme and advance the final stages of the Definitive Feasibility
Study ("DFS") for the Orom-Cross graphite project as well as to provide
general working capital to support operations during this pivotal period
leading up to DFS completion.

The Company remains in active discussions with strategic funding partners,
including the US International Development Finance Corporation
("DFC") and African Finance Corporation ("AFC"). These discussions form part
of a broader project financing strategy for the Orom-Cross development.

Investor Warrants

As part of the Placing, Investors will be issued one warrant for each placing
share ("Investor Warrants") exercisable at 4.5p and will be valid for two
years from the date of Admission. These Investor Warrants, if exercised in
full, would result in the Company raising an additional £1.5m.

Related Party Participation

RAB Capital participated in the Placing. RAB Capital holds more than 5% of the
Company's issued share capital, therefore, their participation in the Placing
is deemed a related party transaction as defined under DTR 7.3. The Board
considers RAB Capital's participation in the Placing fair and reasonable.

Senior Management and Consultant Participation

The Company's Chief Operating Officer, Iain Wearing, has subscribed for
£50,000 in the Placing demonstrating his continued confidence in the project
and Company.

 Name          Current Holding  Placing Shares  Holding following Placing  % Holding following the Placing*
 Iain Wearing  6,658,333        1,666,666       8,324,999                  2.6%

*Enlarged share capital of 325,409,954 following the Placing

 

 

Cameron Pearce, Executive Chairman commented:

"We are pleased to secure this funding to maintain momentum as we complete the
6,750m drilling programme and finalise the DFS, both critical for unlocking
project-level financing.

Our recent high-margin purified graphite offtake deals with international
buyers mark a major commercial milestone, and discussions with multiple
parties to broaden our offtake pipeline further remain active.

In parallel, we are progressing several strategic funding discussions with
tier-one partners including the DFC and AFC. The DFS will provide the platform
to finalise these discussions and move forward to develop Orom-Cross as a
globally significant graphite project.

We look forward to updating shareholders on further developments, including
drilling results, resource upgrades, DFS result and downstream processing
plans, in the weeks and months ahead."

 

BookBuild Retail Offer

The Company will launch a separate Retail Offer via the BookBuild platform to
raise up to £100,000 at the Placing Price as set out in a separate RNS to
follow shortly.

Admission of Placing Shares

An application has been made for 33,333,334 new ordinary shares relating to
the Placing to be admitted to trading on the Equity Shares (Transition)
category of the Official List and to the main market of the London Stock
Exchange from 8.00 a.m. on 24 April 2025 ("Admission").

Total Voting Rights

 

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 325,409,954 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.

 

 

 

For further information please contact:

   Blencowe Resources Plc    www.blencoweresourcesplc.com

 Sam Quinn                   Tel: +44 (0)1624 681 250

                             info@blencoweresourcesplc.com (mailto:info@blencoweresourcesplc.com)

 Investor Relations          Tel: +44 (0) 7891 677 441

 Sasha Sethi                 sasha@flowcomms.com (mailto:sasha@flowcomms.com)

 Tavira Financial            Tel: +44 (0)20 3192 1733

 Jonathan Evans              jonathan.evans@tavira.group (mailto:jonathan.evans@tavira.group)

Twitter https://twitter.com/BlencoweRes (https://twitter.com/BlencoweRes)

LinkedIn https://www.linkedin.com/company/72382491/admin/
(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.  Blencowe
completed a successful Pre-Feasibility Study on the Project in July 2022 and
is now within the Definitive Feasibility Study phase as it drives towards
first production.

Orom-Cross presents as a large, shallow open-pitable deposit, with an initial
JORC Indicated & Inferred Mineral Resource of 24.5Mt @ 6.0% TGC (Total
Graphite Content). This Resource has been defined from only ~2% of the total
tenement area which presents considerable upside potential ahead.
Development of the resource is expected to benefit from a low strip ratio and
free dig operations together with abundant inexpensive hydro-electric power
off the national grid, thereby ensuring low operating costs.  With all major
infrastructure available at or near to site the capital costs will also be
relatively low in comparison to most graphite peers.

In 3Q 2024 Blencowe introduced a Joint Venture concept with experienced
downstream graphite processing partners to ultimately produce upgraded 99.95%
SPG in Uganda.  This strategy has several key advantages plus substantial
cost savings which will assist deliver a world class project once DFS is
completed.

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