REG - Blencowe Resources - Offtake for Purified Graphite

Blencowe ResourcesAnnouncement

19/03/2025 07:15

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RNS Number : 2732B  Blencowe Resources PLC  19 March 2025

Date: 19 March 2025

Blencowe Resources Plc

("Blencowe" or the "Company")

 

 

Blencowe Signs Additional Offtake Agreement for Purified Graphite

 

Sale of High Margin Purified Products to Strengthen Commercial Pathway

 

Blencowe Resources Plc (LSE: BRES) is pleased to announce it has signed a
non-binding Memorandum of Understanding ("MOU") with Apollo Energy Systems
Inc. ("Apollo") regarding offtake of purified graphite sourced from its
Orom-Cross Graphite Project in Uganda.

 

Apollo is based in Florida, United States, and specialises in advanced lead
acid battery storage systems to complement the renewable energy sector. This
agreement aligns with Blencowe's strategy to secure a diversified range of
international buyers across different applications, as it progresses toward
production.

 

Highlights:

 

·    Offtake MOU signed with Apollo: A leading processor of lead acid
battery technology for advanced energy storage systems, operating from the
United States.

·    Indicative Framework Established: Initial agreement for 250 tonnes
per annum of purified small flake graphite, with final pricing to be agreed
within 24 months.

·    High Margin Product: Similar purified graphite products to what will
be sold to Apollo sell in the region of US$8,000/t, highlighting substantial
profitability on these sales over and above typical sale of concentrates.

·    Successful Initial Product Testing: Apollo has successfully tested
Orom-Cross graphite products and will now advance its internal product
qualification and due diligence to support formal agreement discussions.

·    Expanding Sales Channels: Further offtake discussions continue with
multiple global graphite end-users, including leading OEMs, supporting
Blencowe's strategy for a diversified and resilient sales pipeline with
numerous different offtake customers for all its planned annual production.

·    Advancing Project Funding: The Apollo MOU validates Orom-Cross
graphite quality and potential commercial terms, further supporting ongoing
strategic financing discussions with key institutions including the DFC and
AFC.

 

Strategic Offtake Agreement in a High-Value Market

 

This MOU follows discussions by Blencowe senior management with Apollo during
a recent visit to United States and builds on the successful testing and
consistent quality validation of Orom-Cross graphite.

 

Additionally, it represents an important step in diversifying Blencowe's
offtake strategy by targeting niche high-value end markets, where purified
fine flake graphite commands a significant premium.  While the Apollo MOU
represents a small component of the proposed 5,000tpa Phase 1 production,
the purification (to be undertaken by AETC in Chicago) elevates the value of
fine flake concentrate, transforming a traditionally lower-margin product
into a high-value offering, positioning this agreement as a lucrative niche
offtake opportunity within the specialist energy storage sector.  There is
also the potential to expand volumes of this purified product sold to Apollo
in the future.

 

Blencowe continues to advance discussions with multiple US-based OEMs and
leading graphite buyers, covering both large flake and small flake products.
Following high-level engagements in the United States, several industry
players have initiated quality testing of Orom-Cross graphite.

 

Discussions in the USA have been positive, and Blencowe will continue to work
with these parties as well as others industry leaders worldwide as part of its
commitment to delivering MOUs with leading buyers of graphite products for its
full production output, thus further strengthening the Company's commercial
strategy as it moves towards first production.

 

 

Executive Chairman Cameron Pearce commented:

 

"Following a successful marketing tour of the USA, this MOU is the first of
several that we anticipate bringing to market near term.  It builds on our
initial agreement with Jilin, announced in 2024, to supply up to 15,000tpa
large flake concentrate."

 

"As previously outlined, smaller flake graphite products must undergo a
rigorous pre-qualification process before buyers can commit to offtake
agreements. This process typically takes 2-3 years, requiring the extraction
of substantial raw material from site and the processing of that to bulk 96%
concentrates, and further beneficiation thereafter to 99.95% purified graphite
for OEM testing.  We have significantly accelerated this timeline,
successfully pre-qualifying and delivering all necessary samples, but the
process must still be followed to ensure end users can validate the quality
and consistency of Orom-Cross graphite."

 

"Blencowe continues to execute key milestones as we progress towards an
investment decision post-DFS.  Orom-Cross stands out as truly a unique
graphite project - combining scale, lowest capital and operating costs, and
exceptionally high-purity end products. These factors collectively position us
ahead of most peers and reinforce the long-term value of the project."

 

 

For further information please contact:

   Blencowe Resources Plc

  Sam Quinn                 www.blencoweresourcesplc.com

                            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.

 

 

Apollo Energy Systems Inc.

 

Apollo is a company with 60-years of experience in development of batteries,
fuel cells and systems which incorporate those products.  Their roots go back
to 1953 when they built their first battery plant in Puerto Rico.

 

The company is developing a "Lead Cobalt Battery" and "Alkaline Fuel Cell" to
provide a  Propulsion System for an electric vehicle which will enable that
car to  drive continuously, like a gasoline powered car, without external
 recharging (not necessary to "plug-in" to an outside receptacle); and will
provide a Power Plant System to give electricity to a home, farm,  hotel,
cell towers or commercial establishment without use of the  outside grid
supplied by electric utility companies.

 

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