REG - Blencowe Resources - Issue of Equity

Blencowe ResourcesAnnouncement

22/07/2024 07:00

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RNS Number : 1826X  Blencowe Resources PLC  22 July 2024

22 July 2024

Blencowe Resources Plc

("Blencowe" or the "Company")

 

£1.9 million DFS Funding Completed

 

The Company is pleased to announce funding agreements with key project
partners ("Funding Agreements") within an overall capital raising totalling
approximately £1.9 million at an issue price of 5p (representing a small
premium to the 4.8p closing share price on 19 July 2024). The net proceeds of
the Funding Agreements and capital raise will allow the Company to progress
its Definitive Feasibility Study ("DFS") for its Orom-Cross graphite project
in Uganda alongside the continuation of grant funding being received from the
US Government's Development Finance Corporation ("DFC").

 

£1.9 Million Funding Breakdown:

·    £1,286,062 Project Partners Funding Agreement: The Company has
entered into agreements with several key project partners, issuing 25,721,250
new ordinary shares ("Fee Shares") at 5p in lieu of DFS costs, totalling
£1,286,062, with participation as follows:

o  US$1 million with ADT (Ugandan drilling partners).

o  US$200,000 with Oriental Jinyuan (Asian graphite marketing partner)

o  US$150,000 with American Energy Technology Company (battery technology
partner)

o  US$90,000 with Minrom (technical resource partner)

o  US$250,000 total to other suppliers in lieu of future costs to the
business

·    £459,639 Placing: through the issue of 9,191,520 new ordinary
shares ("Placing Shares") at a placing price of 5p, arranged by Tavira
Financial Limited.

·    £159,063 Subscription: issuing 3,181,260 new ordinary shares
(Subscription Shares") through direct subscription with the Company at a price
of 5p.

 

This fundraising demonstrates a strong validation of the project's value, with
equity buy-ins from key project partners at a premium to the last traded share
price. This is also £1.286 million less cash that the Company must raise
towards completion of the DFS.  Blencowe has stated previously that it will
deliver targeted capital raises with longer term investors to complete the DFS
rather than deeply discounted raises into the retail market.

The Company will seek admission of the Placing Shares to trading on the
official list and the London Stock Exchange at 8.00 a.m. on 25 July 2024
("Admission").

The admission of the Subscription and Fee Shares will be subject to the
publication of a Short Form Prospectus to be approved by the FCA which is well
underway.

 

 

Cameron Pearce, Chairman of Blencowe Resources, commented:

"The Company is pleased to have completed a fundraise that supplements our
working capital alongside the recent grant funding received from the DFC.
Also, we are delighted that our key project partners are joining the register,
and we believe their alignment with our shareholders is a strong endorsement
of the considerable and differentiated project value we are building within
the DFS and from Orom-Cross generally."

 

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 226,418,470 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 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.

 

 

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