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

Jangada MinesAnnouncement

08/04/2025 10:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250408:nRSH1234Ea&default-theme=true

RNS Number : 1234E  Jangada Mines PLC  08 April 2025

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

8 April 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: "This agreement with TaiDa
is yet another offtake arrangement, further reinforcing the confidence in the
world-class potential of the Orom-Cross graphite project. It serves as a
strong endorsement from an internationally recognized company, validating the
project's exceptional value and future prospects.

 

"It follows closely on the heels of the recently approved revised
Environmental, Social, Impact Assessment, following the implementation of an
enlarged development strategy, and interest from the African Finance
Corporation, a Tier One institution, which has signalled its readiness to
provide finance. Together, these developments underscore the project's
quality, scalability, and clear pathway to early in-country production and
processing.

 

"With a large scalable resource, a defined development plan offtake for
10,000tpa Phase 1 production and 21-year mining licence in place, we believe
the outlook for Blencowe is exceptionally bright."

 

Start of Blencowe Resources PLC announcement

 

Blencowe Signs Significant Offtake Agreement for Additional Graphite Sales

 

Major Step Forward provides for larger Initial Production Strategy

 

Blencowe Resources Plc (LSE: BRES), is pleased to announce it has signed an
additional Non-Binding Offtake Agreement with Qingdao TaiDa Carbon Co Ltd
("TaiDa") based in China for natural fine flake concentrate offtake from its
Orom-Cross Graphite Project in Uganda. TaiDa is one of the largest producers
of Uncoated Spheronised Purified Graphite in the world.

 

Highlights:

·    Non-Binding Offtake Agreement with TaiDa: Supply for an initial
5,000t per year of 96% graphite concentrate for three years, with potential
extension and expansion thereafter.

·    Substantial Coverage of Phase 1 Production: This agreement covers 50%
of initial Phase 1 of production of 10,000tpa targeted from 2026

·    Strengthens Sales into High-Value Markets: TaiDa is a market leader
supplying Uncoated Spheronised Purified Graphite ("USPG") to tier one battery
manufacturers and industrial users worldwide.

·    Positive Test Work and Pre-Qualification: Follows successful test
work and 18 months of bulk sample processing by TaiDa to validate Orom-Cross
graphite quality.

·    Pricing to be Agreed at Binding Stage: Pricing expected to reflect
premium markets and will be confirmed post-DFS and financing at binding stage.

 

Following a successful US, UK and Asia marketing trip Blencowe continues
positive discussions with several other potential offtake customers for the
balance of its planned annual production.

 

This agreement follows extensive engagement between Blencowe senior management
with TaiDa and building on 18 months of successful product testing and
validation as part of the two bulk sample test programs that Blencowe has
completed within the DFS in order to get pre-qualified to proceed to offtake
agreements.

 

TaiDa's position as a global leader in purified graphite adds further
commercial credibility to Orom-Cross and paves the way for future sales to its
JV partner, Mitsubishi Chemicals, and tier one other international buyers.

 

The TaiDa offtake agreement underpins Blencowe's decision to expand Orom-Cross
Phase 1 production from 5,000tpa to 10,000tpa which is a critical move to
ensure profitability from the outset.  All offtake to TaiDa will be processed
in China prior to being exported to TaiDa's downstream relationships. Notably
supply through to non-China markets may attract a price premium for Orom-Cross
concentrate sales.

 

Importantly, this deal lays the groundwork for Blencowe's in-country SPG
facility in Uganda, which will enable domestic purification, reduce operating
costs, and capture substantial downstream value where the bulk of profit is
currently being made in world graphite markets.

 

Blencowe is also in discussions in the USA and the UK with other OEMs and
leading downstream processors regarding both large and smaller flake
products.  Testing by these and several other companies is underway with the
Company focused on securing full sales coverage for its Phase 1 production
targeted for 2026.

 

Offtake Agreements to date:

 

The following represents existing agreements now in place to sell the initial
10,000tpa P1 production, comprising ~5,500tpa small flake products and
~4,500tpa large flake products.

 

Large Flake concentrate:

1.   Jilin - NBA for up to 15,000tpa large flake concentrate.

 

Small Flake concentrate:

1.   TaiDa - NBA for up to 5,000tpa small flake concentrate

2.   Apollo - NBA for 250tpa 99.95% purified graphite

 

Other potential offtake partnerships are in progress with various parties
undergoing testing.  As further offtake agreements are signed Blencowe will
consider raising production to even higher levels beyond the initial 10,000tpa
as considered.

 

Executive Chairman Cameron Pearce commented: "Our focus has been clear: secure
offtake agreements that enable us to fully cover initial 10,000tpa Phase 1
production at Orom-Cross - and we're delivering."

 

Offtake discussions to date have gone better than expected. With this TaiDa
agreement adding to other NBA's signed to date we now have all of our Phase 1
production covered, and we are driving offtake volumes towards the next stage
of growth beyond that.  Importantly, this success has allowed us to double
our planned initial P1 output, targeting a more profitable start to
operations."

 

"Orom-Cross is not constrained by its ability to produce, but by what it can
sell. Our phased approach is working and scaling production as determined by
offtake contracts builds key relationships and lays the foundation for
successful long-term growth."

 

"Today's announcement demonstrates the clear commercial demand for Orom-Cross
and supports critical path items towards DFS completion. Importantly, we
continue to make strong technical progress and remain in active discussions
with strategic partners such as the DFC and the AFC to finalise the broader
project financing solution."

 

About Qingdao TaiDa Carbon Co Ltd.

TaiDa is a graphite industry leader with 60-years of experience in the
graphite industry with significant production capabilities in China around SPG
and expandable graphites. The company utilises both the traditional acid based
production process for SPG as well as the more environmentally friendly
thermal process, and TaiDa is widely respected within the industry as one of
the leading experts for most purified graphite products. The company is based
in Qingdao, Shangdong Province in China, historically the centre of the
Chinese graphite industry.

 

More than 80% of the company's output is currently sold overseas into Asian
and European markets and this cemented a Joint Venture between TaiDa and
Mitsubishi Chemicals, which was signed in 1998.  This JV highlights key
relationships between end user battery OEMs and upstream processing
specialists.

 

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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFIFVASLITIIE