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

Jangada MinesAnnouncement

06/02/2024 08:45

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RNS Number : 1709C  Jangada Mines PLC  06 February 2024

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

6 February 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: "Blencowe continues to
generate interest as it advances its Orom-Cross graphite project. Securing
funding underscores investor confidence in this project and also highlights
the strategic foresight of stakeholders in capitalising on the burgeoning
graphite market. As the world continues to prioritise clean energy solutions,
investments in graphite projects serve as a pivotal step towards achieving a
greener and more sustainable future."

 

Start of Blencowe Resources PLC announcement

 

6 February 2024

Blencowe Resources Plc (the "Company")

 

Subscription with new investor to raise US$500,000

& additional conditional subscription for US$3,150,000

& Admission of new ordinary shares

 

New Investor

The Company is pleased to report it has raised US$500,000 (£392,350) at 5
pence per share with a specialist African-based investor ("African Investor")
through the issue of 7,847,000 new ordinary shares. The investor has
undertaken extensive due diligence over the last four months and the current
investment is viewed as an initial entry into the project ahead of anticipated
further investment as required. The shares have been issued to the African
Investor under the Company's existing headroom.

 

Additional Investor and the Issue of a Prospectus

In addition, the Company has conditionally raised a further £2,500,000 at 5
pence resulting in the issue of 50,000,000 new ordinary shares to an
additional strategic investor ("Strategic Investor"). The Company is required
to publish a prospectus on the basis that it will be issuing more than 20% of
its issued share capital in a 12-month period. The Company and its advisers
are in advanced stages of finalising the prospectus. The Company anticipates
publishing the prospectus this month and will update shareholders prior to its
publication.

 

Conditional Subscription

The Strategic Investor has received investment committee approval and made a
firm commitment to subscribe. The subscription by the Strategic Investor is
subject to the Company issuing the prospectus, a general meeting by the
Company to approve certain resolutions relating to the issue of new ordinary
shares, settlement of the investment and the issue and allotment of the new
ordinary shares.

 

For the avoidance of doubt, the subscription by the African Investor is firm
and not contingent on any investment by the Strategic Investor. The
subscription funds have been received from the African Investor and the
Company shall apply for the new ordinary shares to commence trading.

 

Admission

An application has been made for 7,487,000 new ordinary shares to be admitted
to trading on the official list and the London Stock Exchange from 8.00 a.m.
on Friday 9 February 2024 ("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 217,226,950 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.

 

Mike Ralston, CEO of Blencowe Resources, commented:

 

'I am pleased to provide this positive update with respect to our fundraising
initiatives. As previously reported, we have already received US$2,000,000 in
grant funding from the US International Development Finance Corporation
("DFC") out of their approved US$5,000,000 grant. A further US$1,000,000 is
expected from the DFC in the near term as the next milestones have been met.

 

We now welcome a new specialist African investor to the register following the
fundraise of  US$500,000 at 5 pence, which represents a healthy premium to
the current market price and underlines their decision to invest for the long
term after an extensive due diligence exercise. We reasonably believe that
they will look to invest further as our relationship is built.

 

Moreover, we are now in the closing stages of a further subscription of £2.5m
at 5 pence from another Strategic Investor and we are busily working with our
advisers to finalise and issue the prospectus.

 

Both these investments at 5p underline the value proposition offered by
Blencowe and will provide us with a good runway to complete the DFS this year.
We are making rapid progress in de-risking the Orom-Cross project, especially
following the recent letter of interest received from the DFC to provide a
funding solution for the build and development of Orom-Cross. We will continue
to work closely with the DFC as we complete the DFS to ensure construction can
commence at Orom-Cross in a timely fashion.

 

I believe it is testament of the quality of the Orom-Cross project that we
have been able secure funding partners like this at a time when the junior
mining sector continues to face significant difficulties with respect to
sourcing capital. We are hoping to deliver an NPV in the DFS significantly
higher than the post-tax NPV of US$482M achieved in the Pre-Feasibility Study
and will keep shareholders updated on our progress.'

 

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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