REG - Blencowe Resources - Offtake Agreement Signed

Blencowe ResourcesAnnouncement

01/08/2025 07:00

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RNS Number : 5084T  Blencowe Resources PLC  01 August 2025

Date: 01 August 2025

Blencowe Resources

("Blencowe" or the "Company"),

 

Offtake Agreement Signed with Established UK Graphene Manufacturer for
Orom-Cross Graphite

Deal unlocks higher-value western sales channel and potential UK Government
funding support

 

Blencowe Resources Plc ("Blencowe") is pleased to announce the signing of an
additional Non-binding Agreement ("Agreement") for offtake of natural fine
flake concentrate from its Orom-Cross Graphite Project with Perpetuus Advanced
Materials Limited. ("PAM"). PAM is a UK based advanced materials innovator
with more than a decade of expertise in plasma-treated graphene production.

The Agreement covers 19,000 tonnes of +97% TGC fine flake graphite over an
initial five-year term, representing a significant portion of Orom-Cross's
planned Phase 1 output of 10,000tpa, with volumes likely to rise further as
PAM leads the way globally in manufacturing plasma-treated, surface engineered
graphenes and sub-micron particles for commercial uses.

PAM's proprietary requirement for high quality graphite validates Orom-Cross's
product and provides Blencowe with a valuable additional western offtake
partner. Sales into UK markets also create a pathway to access specialist UK
Government critical mineral funding for initial project implementation, which
requires domestic offtake into export-driven supply chains.

 

Highlights:

·  19,000 tonnes of +97% fine flake graphite concentrate to be supplied over
initial 5-year term, ramping up thereafter.

·    Products tested and validated through PAM's proprietary systems.

·    Agreement supports Blencowe's strategy to prioritise high-value
western offtakers.

·  Fine flake sales to western markets currently attract in excess of
US$1,200 per tonne which is significantly higher than Asian prices for similar
products.

·    Builds case for UK Government funding support via existing critical
mineral schemes.

·  Agreement follows a recent, successful UK, US, and EU marketing roadshow
with further offtake discussions ongoing.

 

Strategic Implications

This Agreement represents a major commercial milestone for Blencowe, adding
another high-value, long-term offtake partner from a western market and
further validating Orom-Cross's premium product quality.

PAM's proprietary dry environmentally friendly, plasma process converts fine
flake graphite to industrial scale surface engineered graphenes, currently
utilised by manufacturers requiring lighter, stronger and more
energy‑efficient products.

Importantly, the Agreement covers a significant component of Blencowe's
proposed steady state production of fine flake products from both Phase 1 and
Phase 2 production, and it continues the commitment of the Company in
diversifying offtakes away from lower-margin bulk markets into higher value
applications and cleaner processing technologies. This includes
graphene-enabled solutions in automotive, defence, and electronics which are
all areas where pricing and margins are typically stronger.

Beyond PAM, Blencowe has engaged in advanced discussions with other OEMs and
leading downstream processors in the UK, Europe, and the United States. These
firms are conducting quality testing of Orom-Cross material following the
Company's recent marketing roadshow. Early feedback is encouraging.

As these discussions progress, Blencowe remains focused on building a robust
and diversified offtake book across multiple geographies and end-use sectors.
This will support a strong commercial foundation for full Phase 2 production
at 50,000tpa - positioning Orom-Cross as a leading supplier into both
traditional and emerging graphite markets.

 

UK Government Support Pathway

UK Government funding schemes linked to domestic critical mineral supply
chains require offtake into UK companies that export finished goods. This
Agreement with PAM meets that criterion, allowing Blencowe to progress its
funding application for P1 production, and potentially reducing future
financing risk.

 

John Buckland, Chief Executive of Perpetuus Advanced Materials, commented:

"Blencowe's premium Orom‑Cross graphite provides a secure, high purity
feedstock required to scale our plasma surface engineered graphene
manufacturing programme and the commercial launch of our current performance
tyre, fertiliser and battery storage products."

 

"This supply of feedstock will also fast track our next wave of aluminium,
polymer and petrochemical graphene enhanced products and enable future
commercial development of our extensive panoply of 'pre-production'
prototypes."

 

Blencowe Executive Chairman Cameron Pearce commented:

"This offtake Agreement is one of the most significant to date for Orom-Cross
in that it provides substantial sales of fine flake concentrate into a leading
western buyer.  Western markets are currently paying considerably more per
tonne for fine flake concentrate than Asian markets so the more western
contracts we can bring in the better."

"We understand that PAM intends to leverage its ability to produce industrial
quantities of high quality surface engineered graphenes to innovate and
develop graphene enabled products. We hope to be providing PAM with
considerable quantities of product over a long period into the future as both
companies expand our respective operations."

"Once again the high quality of Orom-Cross graphite is clearly differentiating
our product from our peers and I cannot stress how important this is in
building a successful commercial model.  Added to which this particular sale
channel opens the door for Blencowe to pursue niche UK Government funding
support, which could provide yet another unique value-add proposition for our
Company."

 

Blencowe CEO, Mike Ralston, talks about this offtake agreement and other
Company matters in the following two interviews:

https://media.focusir.com/BlencoweResourcesAnnouncesOfftakePartnerInTheUK
(https://media.focusir.com/BlencoweResourcesAnnouncesOfftakePartnerInTheUK)

https://www.voxmarkets.co.uk/articles/q-a-with-blencowe-resources-ceo-mike-ralston-00ae062
(https://www.voxmarkets.co.uk/articles/q-a-with-blencowe-resources-ceo-mike-ralston-00ae062)

 

 

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.sethi@blencoweresourcesplc.com
                                (mailto:Sasha.sethi@blencoweresourcesplc.com)
   Tavira Securities            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 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 is now
completing 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. Development of the resource is expected to benefit from a
low strip ratio and free dig operations, thereby ensuring lower operating and
capital costs.

 

Perpetuus Advance Materials Limited.

Perpetuus Advanced Materials is a UK company with over ten years' experience
in the development of plasma-treated, surface engineered graphenes, and
sub-micron particles for commercial use.  It is considered a global leader in
its fields of expertise.

Perpetuus has developed the first in its range of proprietary nano engineered
graphene-enhanced masterbatch compounds, formulated specifically for the field
of commercial, passenger and industrial tyre manufacturing sectors. The
initial offering will be broadened to include other polymer/elastomer
masterbatches suitable for industries such as hoses, seals, gaskets, V-belts,
and conveyor belts.

Using its environmentally friendly, plasma treatment process, Perpetuus
graphenes are integrated into the masterbatch. The resultant masterbatch is
now available in industrial quantities, allowing tyre manufacturers to
integrate this breakthrough material into their existing production processes.

 

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