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

Jangada MinesAnnouncement

29/01/2024 08:30

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RNS Number : 2043B  Jangada Mines PLC  29 January 2024

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

29 January 2024

 

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. 10% interest.

 

Jangada Executive Chairman, Brian McMaster, said: "It's great that Blencowe's
Orom-Cross graphite project in Uganda has been recognised by the DFC, the U.S.
government's development finance institution, for its potential role in
delivering a reliable supply chain for graphite beyond China, which is a
critical component in various green energy applications. Funding any project
can be challenging, but with a partner such as the DFC, this project is
looking increasingly exciting."

 

Start of Blencowe Resources PLC announcement

 

Blencowe Resources Plc

 
("Blencowe" or the "Company")

 

US International Development Finance Corporation provides Letter of Interest

for Orom-Cross project financing

 

DFC lead mandated partner for Orom-Cross project funding

 

Blencowe Resources Plc (LSE: BRES) is pleased to announce it has received a
formal Letter of Interest ("LOI") from the US International Development
Finance Corporation ("DFC") in which the DFC has indicated its willingness to
participate in debt funding for the Orom-Cross graphite project ("Orom-Cross
or the "Project") in Uganda, subject to all necessary due diligence.  This
comes following recent discussions with DFC project funding division and
follows the 2023 agreement with the DFC's technical assistance division, who
have already entered into a US$5 million Technical Assistance Grant ("TAG").

 

To date, US$2 million of grant funds have been received from the DFC under the
TAG, with the balance expected during the course of 2024 as certain milestones
are met. The TAG also provided for the DFC to have the right to be mandated to
directly provide (and/or arrange for) financing or investment for the Project
on commercial terms.

 

This LOI is the first step of engagement with the DFC project funding division
to advance the project financing process.  During the course of 2024 Blencowe
will work closely with the DFC to reach a decision to mine subject to the DFS
results and other due diligence.  Graphite is high on the US Government
critical metals and minerals list and their strategy is to open up long term
supply chains of graphite.  Demand for graphite is accelerating fast and is
expected to continue growing into the future due mainly to its non-replaceable
role within the lithium-ion battery that stores energy.

 

The Company is seeking to position Orom-Cross to deliver a 'green' graphite
product through a variety of production initiatives, including the use of
hydro-electric power for all mining and processing energy requirements.
Orom-Cross aims to become one of the leading sustainable mining projects
worldwide and this is a very important component of the DFC charter and
critical within a rapidly changing landscape where every participant along the
EV supply chain is being audited on their sustainability credentials by
Original Equipment Manufacturers (OEMs).

 

Orom-Cross's potential ability to aid in the further development of the
Ugandan economy, empowering its population and driving investment and future
development has also proved attractive to the DFC.

 

Cameron Pearce, Executive Chairman commented;

 

"This Letter of Interest is an important next-step in the process for DFC to
consider project financing support to build Orom-Cross into a producing
mine.  Project funding will be crucial for the Company this year as we work
to conclude the DFS and this engagement with the DFC continues to underpin our
long-term relationship with the DFC, as lead mandated partner, to assist in
this exercise."

 

Mr Pearce added "Our executive management team will be meeting DFC in the near
term to evaluate the project implementation strategy and build on the momentum
we have already created together.  We believe this is a unique partnership
that is significantly de-risking Orom-Cross and we will continue to showcase
this exceptional asset as we deliver the DFS results this year."

 

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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