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

Jangada MinesAnnouncement

10/04/2024 10:45

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RNS Number : 0333K  Jangada Mines PLC  10 April 2024

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

10 April 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: ""From advancing SPG coating
and expandability testwork programmes to exploring the development of a
downstream processing facility in Uganda, Blencowe's journey continues to
unfold.  With significant support from the United States International
Development Finance Corporation, which has now paid US$3 million of the agreed
US$5 million to advance a DFS at Orom-Cross, this exciting company and its
world-class graphite project that has an initial JORC Resource of 24.5MT @ 6%
total graphitic carbon ('TGC') based on c.2% of the licence area drilled, is
clearly one to watch."

 

10 April 2024

Blencowe Resources Plc (the "Company")

 

Third tranche US$1 million Grant Funding received from

US International Development Finance Corporation

 

DFC Grant funds continue to support ongoing Orom-Cross Feasibility Study work

 

Blencowe Resources Plc is pleased to announce the receipt of its third tranche
US$1 million funding from the United States International Development Finance
Corporation ("DFC").  This payment, representing a further 20% of the full
US$5 million DFC grant further supports the ongoing Orom-Cross Definitive
Feasibility Study ("DFS") costs, bringing the total received to US$3 million
since the agreement was signed in Sept 2023.

 

Key Milestones Achieved Driving DFS Progress:

·    Completion of SPG (spheronised, purified graphite) coating test work
and waste composite flake test work studies.

·    Initiation of a commercial study into a downstream processing
facility to deliver 99.95% uncoated SPG, located in Uganda.

·    Completion of expandability test work by leading US graphite
technical expert.

 

Blencowe successfully completed all of the above milestones to achieve this
latest disbursement of DFC funds, with results continuing to highlight
Orom-Cross as a standout graphite project with unique characteristics.

 

The successful coating of SPG product marks a crucial step towards product
qualification, positioning Orom-Cross favourably with tier-1 offtakers.
Additionally, achieving success in expandability testing enhances the
potential for high value niche sales for large flake products which could
drive the bulk of Orom-Cross revenues in the future.

 

Blencowe is exploring the potential establishment of a downstream processing
facility in Uganda to further upgrade the purity of the Company's graphite
from a 96% concentrate to 99.95% uncoated SPG.  This transformation would
elevate the value of the lowest value small flake concentrate from
approximately $600/tonne to around $2,500/tonne, setting Orom-Cross apart from
its peers and meeting significant demand for a 99.95% graphite product range
sourced from outside China.  Although still in its early stages, this
strategy promises significant value addition with commercial studies underway
assessing its integration into the core Orom-Cross production strategy.

 

Blencowe remains actively engaged with potential offtake partners worldwide,
fostering relationships with tier-1 offtakers who are evaluating product
samples constantly.  Blencowe's CEO and COO will travel to China and South
Korea over the next few weeks to further these discussions and to establish
key offtake relationships.

 

Executive Chairman Cameron Pearce commented: "I would like to thank DFC for
their ongoing support, they are an outstanding project partner, and we are
able to accelerate the pace of our studies with their assistance.  Our DFS
results underscore what an exceptional graphite project Orom-Cross is,
including its size and scale, low operating costs, low capital start-up costs
and high quality purified end products which are building interest with key
offtakers and end users.  We are committed to adding value wherever possible
to ensure that our DFS delivers a standout result ahead."

 

Mr Pearce added "Blencowe is making significant strides with the feasibility
study as evidenced in this latest disbursement from DFC.  We are confident in
the continued expansion of the natural flake graphite market and we aim to be
one of the few projects that successfully navigates both the qualification and
funding processes to achieve production status ahead."

 

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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