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

Jangada MinesAnnouncement

22/07/2024 07:00

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RNS Number : 2500X  Jangada Mines PLC  22 July 2024

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

22 July 2024

Jangada Mines plc ('Jangada')

 

Investee Company Update: Blencowe Resources PLC

Blencowe Completes £1.9 million DFS Funding

 

Jangada Mines plc, a natural resources development company with interests in
Brazil and elsewhere, is pleased to note the announcement released by Blencowe
Resources PLC (LON:BRES) in which it holds a c. 10% interest.

 

Jangada Executive Chairman, Brian McMaster, said: "We are extremely pleased
with the £1.9 million fundraise announced by Blencowe today, taking it one
step closer to funding the DFS.  More importantly, the equity buy-ins from
key project partners at a premium to the last traded share  is no mean feat,
especially in the current challenging markets.  I would like to congratulate
the Blencowe team on this significant milestone and, as a 10% shareholder,
look forward to following their progress."

 

Start of Blencowe Resources PLC announcement

 

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.

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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