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

Jangada MinesAnnouncement

19/03/2025 13:15

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RNS Number : 3393B  Jangada Mines PLC  19 March 2025

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

19 March 2025

Jangada Mines plc ('Jangada')

 

Investee Company Update: Blencowe Resources PLC

 

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. 7% interest.

 

Jangada Executive Chairman, Brian McMaster, said: "We are extremely pleased
with Blencowe's progress as it advances Orom-Cross, a standout graphite
project with all the key attributes for long-term value - scale, low costs,
and high-purity output. This MOU is the first of several agreements that the
team expects to finalise following a successful US marketing tour,
highlighting the Project's strong commercial potential and reinforcing
Blencowe's strategy to secure high-value offtake agreements in key
international markets."

 

"The news follows the formal Expression of Interest from the African Finance
Corporation, a leading multilateral finance institution, regarding potential
participation in both debt and project level funding, which we again believe
underpins the high quality nature of the Project."

 

Start of Blencowe Resources PLC announcement

 

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."

 

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)

 Investor Relations                    Hugo de Salis              hugo@lepanto.co.uk

 

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