22 July 2024
Blencowe Resources Plc
("Blencowe" or the
"Company")
£1.9 million DFS Funding
Completed
The Company is pleased to announce funding
agreements with key project partners ("Funding Agreements") within
an overall capital raising totalling approximately £1.9 million at
an issue price of 5p (representing a small premium to the 4.8p
closing share price on 19 July 2024). The net proceeds of the
Funding Agreements and capital raise will allow the Company to
progress its Definitive Feasibility Study ("DFS") for its
Orom-Cross graphite project in Uganda alongside the continuation of
grant funding being received from the US Government's Development
Finance Corporation ("DFC").
£1.9 Million Funding Breakdown:
·
£1,286,062
Project Partners Funding
Agreement: The Company has entered into agreements with
several key project partners, issuing 25,721,250 new ordinary
shares ("Fee Shares") at 5p in lieu of DFS costs, totalling
£1,286,062, with participation as follows:
o US$1 million
with ADT (Ugandan drilling partners).
o US$200,000 with
Oriental Jinyuan (Asian graphite marketing partner)
o US$150,000 with
American Energy Technology Company (battery technology
partner)
o US$90,000 with
Minrom (technical resource partner)
o US$250,000
total to other suppliers in lieu of future costs to the
business
·
£459,639
Placing: through
the issue of 9,191,520 new ordinary shares ("Placing Shares") at a
placing price of 5p, arranged by Tavira Financial
Limited.
·
£159,063
Subscription: issuing 3,181,260 new ordinary
shares (Subscription Shares") through direct subscription with the
Company at a price of 5p.
This fundraising demonstrates a strong
validation of the project's value, with equity buy-ins from key
project partners at a premium to the last traded share price. This
is also £1.286 million less cash that the Company must raise
towards completion of the DFS. Blencowe has stated previously
that it will deliver targeted capital raises with longer term
investors to complete the DFS rather than deeply discounted raises
into the retail market.
The Company will seek admission of the Placing
Shares to trading on the official list and the London Stock
Exchange at 8.00 a.m. on 25 July 2024 ("Admission").
The admission of the Subscription and Fee
Shares will be subject to the publication of a Short Form
Prospectus to be approved by the FCA which is well
underway.
Cameron Pearce, Chairman of Blencowe Resources,
commented:
"The Company
is pleased to have completed a fundraise that supplements our
working capital alongside the recent grant funding received from
the DFC. Also, we are delighted that our key project partners are
joining the register, and we believe their alignment with our
shareholders is a strong endorsement of the considerable and
differentiated project value we are building within the DFS and
from Orom-Cross generally."
Total Voting
Rights
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 226,418,470 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.
For further information please
contact:
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite
Project
Orom-Cross is a potential world class graphite
project both by size and end-product quality, with a high component
of more valuable larger coarse flakes within the
deposit.
A 21-year Mining Licence for the project was
issued by the Ugandan Government in 2019 following extensive
historical work on the deposit. Blencowe completed a
successful Pre-Feasibility Study on the Project and is now within
the Definitive Feasibility Study phase as it drives towards first
production.
Orom-Cross presents as a large, shallow
open-pitable deposit, with an initial JORC Indicated & Inferred
Mineral Resource of 24.5Mt @ 6.0% TGC (Total Graphite Content).
This Resource has been defined from only ~2% of the total tenement
area which presents considerable upside potential ahead.
Development of the resource is expected to benefit from a low strip
ratio and free dig operations together with abundant inexpensive
hydro-electric power off the national grid, thereby ensuring low
operating costs. With all major infrastructure available at
or near to site the capital costs will also be relatively low in
comparison to most graphite peers.