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Blencowe Resources #BRES – Fourth tranche US$0.5million Grant Funding received from US International Development Finance Corporation
Blencowe Resources Plc (LSE: BRES) is pleased to announce the receipt of a fourth tranche of funding from the United States International Development Finance Corporation (“DFC”). The DFC is the private sector lending arm of the United States Government. This latest payment of US$0.5 million will continue to support the ongoing Orom-Cross Definitive Feasibility Study (“DFS”) costs and brings the total grant funding received to US$3.5 million since the Technical Assistance Grant funding agreement was signed with the DFC in September 2023.
Highlights:
· US Government support: via the DFC, remains a committed partner to help deliver Orom-Cross Definitive Feasibility Study (“DFS”).
· US$3.5 million input by DFC to date: with a further US$1.5M committed on future milestones.
· DFC remain an invested and incentivised cornerstone party: to consider a full funding solution for Orom-Cross project implementation once the DFS is successfully completed.
· DFS work continues: as Blencowe drives towards completion, including offtake contracts.
Blencowe has successfully completed further key DFS milestones to unlock an additional $0.5 million grant funding from the DFC. This is part of the overall US$5.0 million Technical Assistance Grant agreement that Blencowe completed with the DFC in September 2023. Orom-Cross remains one of the only pre-production resource projects worldwide to have received this US Government/DFC assistance.
Blencowe continues to consider all means possible to value-add at Orom-Cross, using the Project’s unique characteristics to appeal to graphite industry leaders. Orom-Cross is becoming well known in graphite markets as one of the lowest operating cost producers worldwide that can also be brought into production for a much lower capital cost than most of its peers. Furthermore, the high quality of its end products have attracted a host of interested parties for offtake discussions, and the Company is working through a rigorous final bulk sample testing process to become qualified to then lock down offtake contracts with tier one buyers.
The DFC involvement in the Project provides Orom-Cross with top tier international funding party credibility, as well as actual cash towards the completion of the DFS. This unique collaboration is another key differentiating factor for the Company.
Cameron Pearce, Executive Chairman commented;
“We will continue to use a combination of DFC funding and our own funds raised to get the DFS completed in a fashion that does not substantially dilute our shareholders. This is important to us. We have come a long way through DFS already with minimum impact to our register and we want to continue that same course of action ahead.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
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Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Blencowe Resources #BRES – Alan Green talks to MD Mike Ralston
Alan Green talks to Blencowe Resources #BRES MD Mike Ralston. We cover progress with the DFS and the recent Orom Cross graphite testing in China before covering today’s maiden offtake agreement with Chinese graphite giant Jilin for the large flake product. Mike then discusses the plans for pilot plant production could commence at Orom Cross in 2026, plus other potential deals offtake partners and graphite producers and comparisons to peer group. We then discuss funding from an investor network in Africa, and the $5m package from the US Government’s International Development Finance Corporation, before Mike gives a heads up on likely events in the coming months.
Blencowe Resources #BRES – First Offtake MOU Signed for 15,000 Tonnes of Large Flake Per Annum
Blencowe Resources signs its first non-binding Memorandum of Understanding (“MOU”) for natural large flake concentrate offtake from the Orom-Cross Graphite Project. Partnering with Jilin New Technology Graphite Co. (“Jilin”), a prominent global graphite consumer, this initial MOU is the first of several offtake agreements anticipated to complete in the near future ahead of completing the DFS.
Highlights:
- Agreement provides for sale of significant percentage of large flake end products
- Offtake Supply Agreement: MOU to supply 15,000t/annum of blended large flake graphite, covering 66% of Orom Cross initial large flake production for up to three years from start.
- Industry Leader Jilin is a leading processor of battery anode materials and expandable graphite based in north east China.
- Pricing Terms to Follow: Pricing to be agreed under the terms of a formal agreement to be
entered into following completion of the Orom-Cross Definitive Feasibility Study (“DFS”). - Higher Revenue Contribution: As large flake concentrate commands substantially higher
prices than small flakes this MOU covers approx. 50% of the total revenue from Orom-Cross. - Product Validation through Testing: Initial offtake MOU follows substantial test work,
validating product quality. - Advanced Pilot Plant Progress: 600-tonne bulk sample test program nearing completion,
facilitating direct engagement with potential customers for small flake concentrate. - Ongoing Tier-One Discussions: Following successful trip to China and South Korea, Blencowe maintains positive discussions with tier-one offtakers worldwide for the balance of its planned
annual graphite production.
Jilin MOU
The Jilin MOU follows extensive discussions between Blencowe senior management during the recent visit to China, and follows successful bulk testing of graphite concentrate produced by Orom-Cross.
Jilin, a leading vertically integrated graphite producer, is the parent company of the group that completed the 100 tonne bulk sample for Blencowe in 2023 and is currently undertaking the 600t bulk sample processing program which is nearing completion.
The 600t bulk sample will generate commercial scale graphite concentrate divided into large and small flakes. The small flake concentrate will be upgraded to 99.95% by a leading Chinese SPG (spheronised purified graphite) producer, to be distributed to OEMs thereafter for their own testing. Completion of this exercise will be in Q3 2024, facilitating qualification of Orom-Cross small flake products with tier-one offtakers and paving the way for offtake agreements (currently under discussion). This small flake qualification process leading to offtake agreements, which often takes several years, has been expedited by Blencowe who will have completed it in a much shorter timeframe than other graphite companies.
Unlike small flake product, large flake products do not require the same qualification process, hence the more rapid move to signing this first MOU.
Orom Cross Production
The Pre-Feasibility Study envisages Orom-Cross initially delivering 50,000tpa of concentrate post commencement of full mining operations. Approximately 45% of this will be delivered as large flake products which means that the Company will have up to 22,500t per annum of large flake capacity to sell.
This Jilin MOU thus encompasses two-thirds of the company’s proposed steady state production of large flake graphite products (+100mesh, +80mesh and +50mesh) within the first three years. Thereafter it is anticipated the overall production volume will ramp up substantially. Given that large flake concentrate commands substantially higher prices than small flakes, this 15,000tpa to Jilin represents nearly 50% of the anticipated initial total revenue from Orom-Cross, underscoring the MOU’s significance in the context of future project financing and returns.
Other MOUs
Blencowe is currently in advanced negotiations with multiple leading OEMs in China and South Korea regarding the sale of its remaining large flake products and smaller flake products utilised in batteries. These discussions have been positive and the Company anticipates delivering further MOUs with leading buyers of graphite products worldwide with the aim of securing offtake partners for the entire production output from Orom-Cross.
Executive Chairman Cameron Pearce commented:
“This MOU is a key milestone for the Company and it is just the beginning. We anticipate announcing several more agreements over the next few months. Jilin is a leading graphite company globally and this is a strong endorsement of the graphite product from Orom-Cross. The 600-tonne bulk testing program will allow us to provide concentrate to qualify our small flake products through a rigorous qualification process so that we can progress offtake discussions with other tier-one consumers of graphite. We have been able to fast-track what is typically a lengthy process and look forward to completing this qualification process shortly by delivering the relevant concentrate and SPG to these groups.”
“This key milestone reflects the rapid progress we have made. Over the coming months we expect to maintain momentum by securing further MOUs and advancing the DFS. Each step brings us closer to unlocking more value and further de-risking the Orom-Cross project. We look forward to delivering further updates on project key components particularly results of our 600-tonne testing programme and further on offtakes.”
For further information please contact:
Blencowe Resources Plc Sam Quinn www.blencoweresourcesplc.com
Tel: +44 (0)1624 681 250
info@blencoweresourcesplc.com
Investor Relations Sasha Sethi Tel: +44 (0) 7891 677 441
sasha@flowcomms.com
Tavira Financial Jonathan Evans Tel: +44 (0)20 3192 1733
jonathan.evans@tavira.group
Tel: +44 (0)20 3192 1733
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 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 and Blencowe has moved into the Definitive Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
Alan Green covers Blencowe Resources #BRES, Altona Rare Earths #REE & Oxford Cannabinoid Technologies #OCTP on this week’s Stockbox Research Talks
Alan Green covers Blencowe Resources #BRES, Altona Rare Earths #REE & Oxford Cannabinoid Technologies #OCTP on this week’s Stockbox Research Talks
Blencowe Resources #BRES – Third tranche US$1 million Grant Funding received from US International Development Finance Corporation
Blencowe Resources Plc (LSE: BRES) 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.
Cameron Pearce, Executive Chairman 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.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
|
|
Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
|
Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
|
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 in July 2022 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.
Blencowe Resources #BRES – Result of AGM
Blencowe Resources Plc (“Blencowe Resources”) (LSE: BRES) is pleased to announce that at the Company’s Annual General Meeting held 23rd February 2024, all resolutions were duly passed.
For further information, please visit https://blencoweresourcesplc.com or the following:
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Blencowe Resources Sam Quinn
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Tel: +44 (0) 1624 681 250 info@blencoweresourcesplc.com
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Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733 jonathan.evans@tavirasecurities.com
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First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 |
Blencowe Resources #BRES – Subscription & Conditional Subscription
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.’
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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|
Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
|
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First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
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Twitter https://twitter.com/BlencoweRes
Alan Green covers Golden Metal Resources #GMET, East Star Resources #EST and Blencowe Resources #BRES on this week’s Stockbox Research Talks
Alan Green covers Golden Metal Resources #GMET, East Star Resources #EST and Blencowe Resources #BRES on this week’s Stockbox Research Talks
#BRES Blencowe Resources – Receipt of Further $1m tranche from the DFC
Blencowe Resources Plc (“Blencowe” or the “Company”) (LSE: BRES) is pleased to announce it has received its second tranche US$1 million funding payment from the United States International Development Finance Corporation (“DFC”). This represents a further 20% of the full US$5 million DFC grant to be utilised for Orom-Cross Definitive Feasibility Study (“DFS”) costs, with US$2 million received in total to date since this agreement was signed in 2023.
This tranche was disbursed on the completion of several key goals as delivered within the DFS, namely;
· Tailings processing and disposal options study completed.
· Spheronised purified graphite (“SPG”) test work completed (both coated and uncoated products).
· Processing plant flowsheet finalised through 100 tonne pilot plant testing.
· Further 600 tonnes bulk sample mined and ready for export to China for stage two commercial scale testing.
Blencowe can report that all of the above tasks were successfully completed with results reported to market in 4Q 2023. The SPG test work completed by a leading US graphite technical expert was particularly noteworthy as results indicate Orom-Cross graphite can be purified up to a 99.995% product, which is rare and puts the graphite quality from Orom-Cross at the very highest level.
This is of great significance when considering niche markets, product pricing and offtake relationships.
The Company is well on its way to completing the milestones as required for disbursement of the third DFC tranche of grant funds, which will deliver another US$1 million for additional DFS work.
Additionally the Company is continuing to see strong levels of serious interest from a range of high quality offtake groups and strategic parties.
Cameron Pearce, Executive Chairman commented;
“Following successful completion of key feasibility study milestones this latest tranche of grant funding we have received from DFC is valuable to Blencowe and we extend our sincere appreciation to the DFC for their ongoing support. The DFC remains a critical strategic partner of Blencowe with discussions underway as to potential funding support from the DFC for the full Orom-Cross graphite project implementation ahead.”
Mr Pearce added, “I would also like to extend our thanks to our entire operational team both in-country and beyond for their steadfast commitment to achieving objectives and driving progress with the Orom-Cross feasibility study. Orom-Cross is a unique graphite project with its rare suite of key attributes amongst its peers. The DFC identified these outstanding characteristics in their due diligence process when assessing Orom-Cross and investors should note that other strategic parties are also taking notice, which provides a strong platform for activities in 2024.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
|
|
Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
|
Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
|
|
First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
|
Twitter https://twitter.com/BlencoweRes