REG - Blencowe Resources - Strategic Investment

Blencowe ResourcesAnnouncement

26/10/2022 07:00

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RNS Number : 0913E  Blencowe Resources PLC  26 October 2022

Blencowe Resources Plc

 

("Blencowe" or the "Company")

 

Strategic Investment by AIM-Listed Jangada Mines plc and Two Existing Major
Shareholders

 

Highlights

 

-     £750,000 raised at 4p per share with 3 existing investors

-     Jangada Mines plc to increase holding from 2% to 9.5% of enlarged
share capital

-     Existing major shareholders RAB Capital and JUB Capital continue to
invest pro rata to their existing 10.0% and 8.2% shareholdings respectively

-     Asset-level transactions now targeted for DFS and ultimate
development of Orom-Cross

 

Blencowe Resources Plc ("Blencowe Resources" or the "Company") (LSE: BRES) is
pleased to announce a placing of 18,750,000 new ordinary shares ("Placing
Shares") at 4 pence per share to raise a total of £750,000 ("Placing") from
three existing shareholders. The placees will receive 1 warrant per 2 Placing
Shares, exercisable at 8p for 3 years from admission ("Investor Warrants").

 

The Placing was cornerstoned by Jangada Mines plc whom invested £610,000,
which has increased their holding from 2% to 9.5%. Also, the Company's two
other largest institutional investors RAB Capital and JUB Capital have
subscribed for the remaining £140,000 in the Placing, on a pro rata basis, to
maintain their respective 10.0% and 8.2% holdings in the enlarged share
capital of the Company following the Placing.

 

Use of Proceeds

 

The funds will be dedicated to fund the delivery of a 100 tonne bulk sample
from Orom-Cross to China and general working capital.

 

On 3 October 2022, the Company reported an approach from a potential strategic
party looking to undertake further off-site testing ahead of potentially
providing an offtake and funding solution for the development of Orom-Cross.
This successful capital raise will enable the Company to accelerate the bulk
sampling plans and build on the highly encouraging PFS results.

 

 

Admission of Shares to Trading

 

The Company has made an application for 18,750,000 ordinary shares to be
admitted to trading on the official list and the London Stock Exchange with
effect from 8.00 a.m. on 31 October 2022 ("Admission").

 

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 196,679,950 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.

 

Executive Chairman of Blencowe Cameron Pearce commented:

 

"I am delighted to welcome Jangada Mines as a new significant shareholder in
the Company. They share our view of the inherent value of Orom-Cross, which
has already returned a NPV of US$482M from a fraction of our broader resource.
I would also like to thank our two major shareholders for their continued
support and maintaining their holdings through participation in the Placing.
At a time when raising capital for junior resource companies remains
difficult, we are delighted to have secured funding sufficient to provide
working capital for a year at the plc level and also enable us to commence the
process to deliver a 100 tonne bulk sample to our potential strategic partner
in China.

 

As we have previously stated, given the substantial disconnect between our
market capitalisation and asset value, the focus of the Company is to enter
strategic transactions at the asset level for material development, thereby
minimising shareholder dilution and capturing a fairer reflection of value.
The Company has previously advised it hopes to execute its first asset level
transaction in the current quarter, which is expected to provide sufficient
funds to complete the DFS. This is running in parallel with the ongoing
discussions with our potential strategic partner in China.

 

I look forward to updating shareholders as appropriate."

 

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 Securities        Tel: +44 (0)20 3192 1733

 Jonathan Evans           jonathan.evans@tavirasecurities.com
                          (mailto:jonathan.evans@tavirasecurities.com)

 First Equity Limited     Tel: +44(0)20 7330 1833

 Jason Robertson          jasonrobertson@firstequitylimited.com
                          (mailto:jasonrobertson@firstequitylimited.com)

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

LinkedIn  https://www.linkedin.com/company/72382491/admin/
(https://www.linkedin.com/company/72382491/admin/)

 

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