REG - Jangada Mines PLC - Investee Company Update: Blencowe Resources PLC

Jangada MinesAnnouncement

18/05/2023 10:00

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RNS Number : 8815Z  Jangada Mines PLC  18 May 2023

 

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

18 May 2023

 

Jangada Mines plc ('Jangada')

 

Investee Company Update: Blencowe Resources PLC

 

Jangada Mines plc is pleased to note the announcement released by Blencowe
Resources PLC (LON:BRES) in which it holds a c. 9.5% interest. The
announcement is set out below without material changes. 

 

Start of Blencowe Resources PLC announcement

 

Date: 18 May
2023

 

Blencowe Resources Plc

("Blencowe" or the "Company")

 

Placing to Raise £635,000

 

Blencowe Resources Plc ("Blencowe Resources" or the "Company") (LSE: BRES),
the natural resources company focussed on the development of the Orom-Cross
Graphite Project in Uganda, is pleased to announce that it has raised
£635,000 at 5 pence per share ("Placing") through the issue of 12,700,000
new ordinary shares of 0.5p ("Placing Shares"). The Company will issue
investors in the Placing with 1 warrant per 2 Placing Shares (Investor
Warrants") which are exercisable at 8p for a period of 3 years from Admission
of the Placing Shares.

 

Use of Funds

The net proceeds of the Placing will be used to maintain momentum on the
Definitive Feasibility Study ("DFS") work, which has been underway since start
of 2023, and is managed by leading firm CPC Engineering.

 

The Company recently announced it had passed the key screening hurdles by the
Development Finance Corporation ("DFC") regarding a US$4.5M Technical
Assistance Grant ("TAG") to fund 50% of the DFS. The Company expects to
complete the process of obtaining the TAG with DFC over the coming weeks and
then be able to draw down funds for the DFS work. The net proceeds allows the
Company to avoid any immediate delay to the DFS programme whilst the DFC grant
is being finalised.

 

In parallel, the Company awaits results from its metallurgical testing
programs in both China and the United States of America. In January 2023 the
Company delivered 20kgs of concentrate to technical experts in Wuhan
University of Technology in China and 5kgs to American Energy Technologies Co.
for SPG and expandables testing. A further 100 tonnes bulk sample has been
extracted and is in transit to Jilin Huiyang New Material Technology Company,
with results expected to reconfirm historic results of IMO testing in Perth,
which demonstrated concentrates from Orom-Cross is of consistently high
quality. The net proceeds will enable the Company to accelerate these
discussions.

 

Related Party Transaction

RAB Capital, Jangada Mines plc and JUB Capital are considered related parties
on the basis their respective holdings are greater than 5%. The major
shareholders participated in the Placing which is deemed a related party
transaction as defined under DTR 7.3. The Board considers their participation
in the Placing are fair and reasonable insofar as the Company's shareholders
are concerned having taken financial advice from its financial adviser Tavira
Financial Ltd given the Board does not have an independent director.

 

Major Shareholder

 

 Major Shareholder  Placing Shares  % of the Placing
 Jangada Mines plc  2,000,000       15.7
 RAB Capital        1,500,000       11.8
 JUB Capital        800,000         6.3

 

Admission

An application has been made for 12,700,000 Ordinary Shares to be admitted to
trading on the official list and the London Stock Exchange from 8.00 a.m. on
23 May 2023 ("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 209,379,950 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.

 

Cameron Pearce Executive Chairman commented:

 

 "We are very pleased to secure additional funding to continue the DFS work
programmes without delay. The DFC grant should be completed in the near future
and the Company is focused on maintaining the momentum to optimise the
benefits of this.

 

Securing the support of a tier one financial institution such as the DFC
provides the Project and our Company with a high degree of credibility and we
are working through the process with the DFC so that they may formally join as
our partner on the balance of the DFC work.

 

At the same time we are making progress on our metallurgical studies in China
and the US, with initial results expected in the near term. A favourable
outcome in the test work has the potential to ultimately provide a funding
solution for Orom-Cross to first production.

 

I look forward to providing further updates in the coming weeks."

 

End of Blencowe Resources PLC announcement

 

**ENDS**

 

For further information please visit www.jangadamines.com
(http://www.jangadamines.com/)  or contact:

 

 Jangada Mines plc                     Brian McMaster (Chairman)  Tel: +44 (0)20 7317 6629
 Strand Hanson Limited                 Ritchie Balmer             Tel: +44 (0)20 7409 3494

 (Nominated & Financial Adviser)       James Spinney

 Tavira Securities Limited             Jonathan Evans             Tel: +44 (0)20 7100 5100

 (Broker)

 St Brides Partners Ltd                Ana Ribeiro                jangada@stbridespartners.co.uk

 (Financial PR)                        Isabel de Salis

 

 

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