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#BRES Blencowe Resources Plc – AFC Expression of Interest
African Finance Corporation Issues Expression of Interest for Orom-Cross Project Funding
Tier One African Investment Bank Signals Willingness to Participate in Both Debt and Project Equity
Blencowe Resources Plc (LSE: BRES) is pleased to announce it has received a formal Expression of Interest (“EOI”) from the African Finance Corporation (“AFC” or “the AFC”), a leading multilateral finance institution, regarding potential participation in both debt and project level equity funding for the Orom-Cross graphite project in Uganda.
AFC: A Premier Institutional Funding Partner
This EOI follows extensive engagement between Blencowe and AFC over the past few years and represents a key step to securing the AFC as a co-funding solution partner for Orom-Cross. The AFC has conducted due diligence on the Orom-Cross Graphite Project and recognises its high-purity product, low-cost structure, and strategic positioning as a key supplier of non-China graphite into the global battery and industrial markets.
The AFC’s stated interest includes both debt and project level equity participation, underscoring its confidence in the long-term value of Orom-Cross.
The AFC is one of Africa’s most established and well-capitalised development finance institutions, boasting $12.3 billion in assets and a Moody’s A3/P-2 credit rating, reinforcing its position as a premier lender for large-scale resource projects. The AFC has a strong track record in funding major African mining developments, including:
· $175 million for Baomahun Gold (FG Gold in Sierra Leone)
· $86 million for Thor Exploration’s Segilola Gold (Nigeria)
· $130 million for Shalina Resources (DRC copper-cobalt)
AFC’s Expression of Interest includes potential funding participation in the initial start-up phase of Orom-Cross development, targeted for 2026. As part of this initial investment, AFC has also indicated an interest in securing future funding rights for subsequent project expansions, aligning with Orom-Cross’s long-term growth strategy.
Graphite’s essential role within the global energy transition has made securing independent, large-scale graphite supply a top priority, and AFC’s engagement provides strong validation of Orom-Cross as one of the world’s most promising new graphite projects.
Complementing Existing DFC Support
AFC’s interest represents a major step forward in securing project financing, complementing the existing $5 million Technical Assistance Grant (TAG) provided by the US International Development Finance Corporation (“DFC”) in 2023. DFC remains supportive of Blencowe and retains the first right to provide cornerstone debt funding for Orom-Cross.
With both AFC and DFC now involved, Blencowe is positioning Orom-Cross with a strong institutional funding pathway that could cover all debt and project equity financing following DFS completion.
Next Steps
Blencowe will continue its discussions with AFC and other institutional partners to finalise a financing structure that enables Phase 1 development in 2026 and ensures a clear pathway to commercial-scale production.
The Company remains committed to delivering a world-class graphite project, with a low-cost, high-purity supply chain that aligns with European and North American offtake priorities.
Executive Chairman Cameron Pearce commented: “Securing this Expression of Interest from the African Finance Corporation is a material milestone for Blencowe. AFC is one of Africa’s most respected financial institutions and its interest in Phase 1 funding, alongside future development phases, reinforces Orom-Cross’s long-term strategic importance.
“Institutional investors are increasingly recognising graphite’s critical role of in the global battery supply chain. With AFC now engaged alongside DFC, Blencowe is building a strong financial foundation that will position Orom-Cross as one of a select few new graphite mines advancing towards production. Our ongoing drill programme is expected to materially increase our graphite resource, further enhancing Orom-Cross’ economics and the attraction of the project.”
“We appreciate AFC’s support and look forward progressing discussions. Our differentiated strategy will mitigate risk, drive long-term success, and establish Orom-Cross as a premier supplier in the global energy transition.”
About African Finance Corporation
AFC is an Africa-focused infrastructure and development financing institution established by treaty between sovereign states to accelerate infrastructure and industrial development across the continent. With total assets of US$12.3 billion, AFC is Africa’s second highest investment grade rated multilateral financial institution, holding an A3/P-2 rating from Moody’s Investors Service.
Since 2008 AFC has disbursed more than US$13.2 billion across key infrastructure and resource projects, with an investment footprint across 36 African countries and 43 member states, including the Republic of Uganda.
AFC adds significant value to the development of major mining projects in Africa by leveraging its in-house technical expertise, international reach, and relationships for fundraising from private and development finance institutions alike. The AFC has various long-term investments in the mining sector across several African countries in addition to investments in a range of infrastructure projects in transport and logistics, power, heavy industries, and telecommunications.
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 sasha.sethi@blencoweresourcesplc.com |
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733 |
Blencowe Resources #BRES – Orom-Cross Graphite Excels in SAFELOOP Product Testing
Blencowe Resources (LSE: BRES) is pleased to announce significant progress within Project SAFELOOP, a European Union-led initiative under the €100 billion Horizon Europe Programme focussed on the European Union’s renewable energy transition. SAFELOOP aims to deliver a Gen3 Lithium-ion battery for standardised EV buses, prioritising safety, recycling, and high performance. Blencowe is the exclusive supplier of natural flake graphite to the project.
In collaboration with its US-based technical partner and graphite specialist American Energy Technologies Co. (“AETC”), Orom-Cross graphite has undergone initial testing and upgrading to battery quality material, delivering standout results. Testing confirmed the exceptional purity of Orom-Cross graphite, with thermal refinement to 99.98% wt%C – exceeding industry standards. Furthermore, composite anodes produced with Orom-Cross graphite achieved an outstanding 68.4 wt% natural graphite content, one of the highest loadings ever recorded in the battery industry, thus reinforcing its strategic importance in advanced battery applications.
Highlights:
· Ultra-Pure Graphite: Orom-Cross graphite thermally refined to 99.98% wt%C, demonstrating exceptional purity over and above market standards.
· Industry-Leading Loadings: Composite anodes using Orom-Cross graphite achieved 68.4 wt% natural graphite content – one of the highest loadings recorded in the battery industry specific to the EV battery anode composition.
· Superior Performance: Initial electrochemical tests indicate outstanding results, driven by the unique properties of Orom-Cross graphite.
· Strategic Potential: SAFELOOP’s anticipated graphite concentrate demand from Orom-Cross could lead to substantial, high-value offtake opportunities.
Technical Insights and SAFELOOP Progress
During November 2024, Orom-Cross graphite samples were processed by AETC as part of the SAFELOOP initiative. These samples underwent thermal purification, shaping, and composite preparation in which they were co-processed with synthetic graphite to create high-performance anodes.
AETC, alongside other SAFELOOP expert partners, is advancing the development of a high-quality Gen3 Li-ion battery (“LIB”) for Electric Vehicles to be deployed on European soil. Test work completed to date indicates exceptionally promising results in the targeted EV application using Orom-Cross graphite, showcasing its premium quality.
In one of the composites produced during shaping and classification the amount of Orom-Cross natural graphite was a remarkable 68.4 wt% – this is by far one of the highest loadings of natural graphite into a composition of EV battery anodes known in the battery industry. By way of reference, EV anodes are usually synthetic graphite dominant, with the content of synthetic graphite generally representing anywhere from 75-100% of anode composition.
Testing will continue into the next phase as the SAFELOOP project evolves.
SAFELOOP estimates for graphite concentrate volumes required from Orom-Cross to fulfil battery demand is projected to be substantial, should the project transition to commercial-scale production. The SAFELOOP channel therefore represents a tier one opportunity for Blencowe, with the potential for premium pricing far exceeding typical market levels.
Executive Chairman Cameron Pearce commented:
“We are very pleased to see such remarkable results from Orom-Cross graphite, overlaid with AETC’s processing expertise and other SAFELOOP partners’ involvement. Achieving an ultra-pure 99.98% wt%C graphite and one of the highest natural graphite loadings ever recorded at 68.4 wt% underscores the high quality of our graphite deposit and validates the differentiated strategy we have pursued. SAFELOOP aligns perfectly with our development timeline and its potential scale offers an exceptional and valuable offtake channel for the future.”
“Our focus remains on delivering a unique project that stands out in the graphite sector. By pursuing high-value opportunities like micronisation, downstream processing, and now SAFELOOP, we are securing the long-term success of Orom-Cross and building shareholder value.”
AETC Manager of Government Relationship, Anna Doninger commented:
“The preliminary conclusions of the test work conducted to date is that Blencowe’s natural graphite could become an enabling technology for making an EV battery grade composite anodes which contain both natural crystalline flake and synthetic graphites as a coherent whole, and which are simultaneously dominant in their use of natural graphite, behaving at an impressive level in electrochemical performance. This is yet another testimony to the premium quality of Blencowe’s natural graphite and its excellent potential for application in the EV battery market.”
Strategic Outlook
Blencowe is proud to support SAFELOOP in developing safer, part-recycled, high-performance EV batteries. The Company continues to position Orom-Cross as a globally significant graphite project through innovation, strategic partnerships, and market differentiation.
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 jonathan.evans@tavirasecurities.com
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Twitter https://twitter.com/BlencoweRes
#BRES Blencowe Resources PLC – Commencement of Drilling
Blencowe Resources Plc (“Blencowe” or the “Company”), is pleased to announce that drilling has now commenced on the Phase 7 exploration programme at its Orom-Cross graphite project in Uganda. This 6,750 metre campaign will be the final drilling programme for the purposes of completing the DFS and establishing an updated JORC Resource to support the expanded mining operations at Orom-Cross.
Highlights:
· 6,750 metre programme designed to substantially increase both Resources and Reserves for inclusion into Definitive Feasibility Study (“DFS”).
· Infill drilling on existing deposits to upgrade resource base and classification of all Inferred materials to Indicated and Measured.
· Drilling of new high grade target deposits to define additional Resources.
· Geotechnical drilling for confirmation of pit slope parameters for mine planning.
· Trenching and mapping over licences for future resource targeting
· Upgrade of access roads for all weather access.
· Permanent exploration camp to be commissioned.
The Phase 7 programme will involve drilling over the identified Camp Lode and Northern Syncline deposits, where the Company has already established an existing JORC Resource of 24.5Mt @ 6%. The objective of this drilling is primarily to upgrade existing Indicated and Inferred resources to Measured, under the JORC guidelines.
The Company will also target extensions to the Northern Syncline (Western Limb) as well as the exciting new prospective Southern GT-01 target. Whilst the current average grade of 6% at Orom-Cross is already in the top quartile globally of graphite projects, historical work undertaken by the Company has highlighted the potential for even higher grades in these areas.
As a component of the programme several holes will be drilled to provide the necessary geotechnical information for the confirmation of pit design parameters and slope stability parameters for the project. These holes will also double as Resource definition information. The drilling and subsequent assessment will be undertaken by local Ugandan drilling firm ADT Drilling, whilst Minrom Consulting from South Africa will undertake the geological assessment alongside Middindi Consulting. Both ADT and Minrom have been associated with the Orom-Cross project since 2012 and have a solid understanding of the project.
Other works planned as part of this programme include trenching and mapping on additional areas outlined from aeromagnetics, designed to identify further areas for future resource expansion, noting the existing JORC Resource sits on just ~2% (as drilled to date) of the broader Orom-Cross licence.
The Company has also commissioned the establishment of a permanent exploration camp onsite, with portable units for accommodation and messing being erected onsite to support ongoing operations. These constitute the first fixed facilities on-site, representing a key milestone for Blencowe as it drives Orom-Cross towards first production.
Executive Chairman Cameron Pearce commented:
“We have now started the latest drilling programme at Orom-Cross after considerable preparation work undertaken during December. This extensive campaign will be one of the last key components to wrapping up the DFS and we aim to deliver considerably larger Resources and Reserves to support the higher production levels expected, as well as a longer life of mine.
“We remain on track to complete the DFS in H1 2025 and we expect to begin reporting drilling results during the current quarter.”
Map 1: Orom-Cross drill programs, including Phase 7 and the new GT 01a drill target
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 jonathan.evans@tavirasecurities.com
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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
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 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 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.
In 3Q 2024 Blencowe introduced a Joint Venture concept with experienced downstream graphite processing partners to ultimately produce upgraded 99.95% SPG (spheronised, purified graphite) in Uganda. This strategy has several key advantages including additional returns and substantial cost savings which will assist deliver a world class project once DFS is completed.
Blencowe also announced full Minerals Security Partnership (MSP) accreditation in 2024 which provides additional tier-one credibility plus further support from this highly influential quasi-Government organisation. Together with the US$5 million grant funds received from the US Government via the Development Finance Corporation, the Company is building unique and solid relationships to assist with funding solutions for Orom-Cross project implementation.
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 – 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.
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
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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
|
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.
#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
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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
|
Twitter https://twitter.com/BlencoweRes
Blencowe Resources #BRES – Warrants Update
Further to the announcement on 18 April 2023, the Board of the Company has indicated its wish to exercise 3,150,000 warrants from a total of 6,000,000 warrants allocated that are due to expire on 18 July 2023. Cameron Pearce and Sam Quinn exercised 500,000 and 250,000 respectively as announced on 23 November 2020, therefore, a balance of 2,150,000 warrants of 4p will expire today.
The Board continue to be in a close period relating to the advanced discussions with the DFC regarding funding the DFS, therefore, may not deal in the securities of the Company.
The Board has committed unconditionally to proceed with exercising the warrants at the earliest opportunity possible at such time it is permitted to exercise the warrants. The Company shall receive proceeds of £126,000 following the exercise.
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Proceeds |
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Cameron Pearce |
1,000,000 |
4p |
£40,000 |
|
Sam Quinn |
750,000 |
4p |
£30,000 |
|
Mike Ralston |
1,000,000 |
4p |
£40,000 |
|
Alex Passmore |
400,000 |
4p |
£16,000 |
The Board will notify their holdings in due course following the exercise of warrants.
For further information, please visit https://blencoweresourcesplc.com or the following:
|
Blencowe Resources Sam Quinn
|
Tel: +44 (0) 1624 681 250
|
|
Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
|
Tavira Financial Jonathan Evans |
Tel: +44 (0)20 7100 5100 jonathan.evans@tavirasecurities.com
|
|
First Equity Limited Jason Robertson |
Tel: +44 (0)203 192 1733 jasonrobertson@firstequitylimited.com
|
Blencowe Resources #BRES – Placing to Raise £635,000
Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES), the natural resources company focussed on the development of the Orom-Cross Graphite Project in Uganda, is pleased to announce that it has raised £635,000 at 5 pence per share (“Placing”) through the issue of 12,700,000 new ordinary shares of 0.5p (“Placing Shares”). The Company will issue investors in the Placing with 1 warrant per 2 Placing Shares (Investor Warrants”) which are exercisable at 8p for a period of 3 years from Admission of the Placing Shares.
Use of Funds
The net proceeds of the Placing will be used to maintain momentum on the Definitive Feasibility Study (“DFS”) work, which has been underway since start of 2023, and is managed by leading firm CPC Engineering.
The Company recently announced it had passed the key screening hurdles by the Development Finance Corporation (“DFC”) regarding a US$4.5M Technical Assistance Grant (“TAG”) to fund 50% of the DFS. The Company expects to complete the process of obtaining the TAG with DFC over the coming weeks and then be able to draw down funds for the DFS work. The net proceeds allows the Company to avoid any immediate delay to the DFS programme whilst the DFC grant is being finalised.
In parallel, the Company awaits results from its metallurgical testing programs in both China and the United States of America. In January 2023 the Company delivered 20kgs of concentrate to technical experts in Wuhan University of Technology in China and 5kgs to American Energy Technologies Co. for SPG and expandables testing. A further 100 tonnes bulk sample has been extracted and is in transit to Jilin Huiyang New Material Technology Company, with results expected to reconfirm historic results of IMO testing in Perth, which demonstrated concentrates from Orom-Cross is of consistently high quality. The net proceeds will enable the Company to accelerate these discussions.
Related Party Transaction
RAB Capital, Jangada Mines plc and JUB Capital are considered related parties on the basis their respective holdings are greater than 5%. The major shareholders participated in the Placing which is deemed a related party transaction as defined under DTR 7.3. The Board considers their participation in the Placing are fair and reasonable insofar as the Company’s shareholders are concerned having taken financial advice from its financial adviser Tavira Financial Ltd given the Board does not have an independent director.
|
Major Shareholder |
Placing Shares |
% of the Placing |
|
Jangada Mines plc |
2,000,000 |
15.7 |
|
RAB Capital |
1,500,000 |
11.8 |
|
JUB Capital |
800,000 |
6.3 |
Admission
An application has been made for 12,700,000 Ordinary Shares to be admitted to trading on the official list and the London Stock Exchange from 8.00 a.m. on 23 May 2023 (“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 209,379,950 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.
Cameron Pearce Executive Chairman commented:
“We are very pleased to secure additional funding to continue the DFS work programmes without delay. The DFC grant should be completed in the near future and the Company is focused on maintaining the momentum to optimise the benefits of this.
Securing the support of a tier one financial institution such as the DFC provides the Project and our Company with a high degree of credibility and we are working through the process with the DFC so that they may formally join as our partner on the balance of the DFC work.
At the same time we are making progress on our metallurgical studies in China and the US, with initial results expected in the near term. A favourable outcome in the test work has the potential to ultimately provide a funding solution for Orom-Cross to first production.
I look forward to providing further updates in the coming weeks.”
For further information please contact:
|
Blencowe Resources Plc Sam Quinn
|
Tel: +44 (0)1624 681 250 info@blencoweresourcesplc.com |
|
Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441 Email: sasha@flowcomms.com |
|
Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733 jonathan.evans@brandonhillcapital.com |
|
First Equity Limited Jason Robertson |
Tel: +44 (0)20 7330 1883 jasonrobertson@firstequitylimited.com |
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 and Blencowe completed a successful Pre-Feasibility Study in 2022. The Company has now 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, with only a small percentage of the overall deposit drilled to date. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
Blencowe Resources #BRES – Strategic Funding Partner for Orom-Cross Graphite Project
Blencowe Resources Plc (“Blencowe” or the “Company”) (LSE: BRES) is pleased to announce it has passed the key Screening hurdle within the DFC in order to move forward to secure a substantial Technical Assistance Grant.
The process now moves to a Grant Agreement and other final requirements to complete this funding solution. The TAG under consideration for Orom-Cross is up to US$4.5M for costs associated with the Definitive Feasibility Study and the terms are considered advantageous to Blencowe as any repayment would only occur if and when the project goes into production at a future date. The TAG provides for DFC to pay 50% of agreed costs within the Orom-Cross DFS, with Blencowe to provide the remainder.
Once consummated this relationship could also provide Orom-Cross with a potential project funding solution as the TAG will require a ROFR for debt on commercial terms for full project implementation. Debt funding to build a mining operation remains one of the principal challenges for all graphite projects hence this ROFR would further de-risk Orom-Cross by adding an internationally respected tier one financial institution as a key project supporter for this funding ahead.
Highlights:
· Blencowe passes key hurdle for engagement with US project development financial institution, the DFC.
· US International Development Finance Corporation is America’s leading development finance institution that partners with the private sector to provide finance solutions for project development in markets deemed as critical.
· DFC geared to provide funding assistance for Orom-Cross as part of the US Government’s strategic drive for further access to critical minerals and metals, within its wider renewables strategy.
· Orom-Cross has successfully passed through the key Project Screening test within DFC, with both Parties now moving to a binding Grant Agreement.
· Blencowe is seeking up to US$4.5 million as a Technical Assistance Grant (“TAG”) for Definitive Feasibility Study costs for the Orom-Cross Graphite Project (“Project”).
· As part of the Grant Agreement DFC will require a right of first refusal (“ROFR”) on debt finance for the full project implementation, which would give Blencowe a potential funding solution ahead with a major financial institution.
About International Development Finance Corporation
The DFC is the primary US Government finance institution set up to provide financially sound funding solutions for private-sector initiatives pertaining to critical challenges facing the world, in this case the drive towards increased sustainability across the planet. It is an agency of the United States federal government and represents US interests.
DFC’s lending capacity is used to provide loans, guarantees, equity investments and political-risk insurance for private-sector led development projects, feasibility studies and technical assistance. DFC invests across several sectors with stated goals of empowerment, innovation, investment into Africa and climate change.
Orom-Cross is directly linked with several of these goals. It may ultimately become one of the largest graphite producing operations in the world, over a very long mine life, delivering a concentrate as end-product which is a non-replaceable input component to batteries. These batteries provide the means to store energy across many different renewable energy applications as well as to replace vehicles powered by fossil fuels with electric vehicles (“EVs”). Electric vehicles are powered by lithium-ion batteries which have more graphite within them than any other metal (up to 70kgs graphite per battery) and EV demand is accelerating at a rate where it is doubling every few years, and expected to continue exponentially into the future. Graphite is therefore high on the US Government critical metals and minerals list and securing long term supply of graphite is a key strategy.
Orom-Cross will also deliver a greener graphite product than many other producers through a variety of production initiatives, including the use of hydro-power for all mining and processing energy requirements. Orom-Cross aims to become one of the leading sustainable mining projects worldwide and this is considered very important in a rapidly changing landscape where every participant along the EV supply chain will be audited on their sustainability credentials by OEMs.
Cameron Pearce, Executive Chairman commented;
“This milestone represents a significant step forward in the development of Orom-Cross. We have now further de-risked the Project by introducing a high quality funding partner that will ultimately cover a substantial portion of the costs to complete the DFS.
This same partner is a highly respected international financial institution that may also deliver a debt funding solution for the construction of the plant and associated infrastructure once we move into the implementation stage, which adds another dimension altogether. We are therefore covering several important bases here to provide an all-encompassing funding solution to ensure that we can successfully bring Orom-Cross into production over the medium term once we have completed our final feasibility studies. By doing this as a Technical Assistance Grant Blencowe is importantly retaining 100% ownership in the Orom-Cross Project as we believe the completion of the DFS will add significant additional value ahead, which we want to retain in full for our shareholders.
DFC is a tremendous partner for Blencowe given its considerable experience assisting private-sector companies through project development stage and into production. DFC has experience of both the continent and the country we are operating within, as well as expertise dealing with Governments and other stakeholders. All parties understand the tremendous value that Orom-Cross presents going forward within a rapidly accelerating renewable energy market, and more specifically a rampant lithium-ion battery EV market.”
For further information please contact:
|
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 Securities Jonathan Evans |
Tel: +44 (0)20 3192 1733 jonathan.evans@tavirasecurities.com
|
|
First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
|
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 has now 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 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, thereby ensuring lower operating and capital costs.