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Sovereign Metals #SVML – Mining Trials Conclude Successfully
Sovereign Metals Limited (ASX:SVM, AIM:SVML, OTCQX:SVMLF) (Sovereign or the Company) is pleased to announce that it has successfully completed the mining trials stage of its Pilot Mining and Land Rehabilitation Program (Pilot Phase) at the Kasiya Rutile-Graphite Project in Malawi (Kasiya).
Highlights:
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Test mining at Kasiya has successfully concluded following completion of hydraulic and dry mining trials |
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Mining trials have confirmed that soft, friable Kasiya orebody can be efficiently mined utilising various mining methods |
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Fraser Alexander, a global industry leader in hydraulic mining, conducted the trial which commenced in August |
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The dry mining trial confirmed Kasiya can be efficiently mined to depth using standard mobile excavators and trucks |
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The Pilot Phase program continues to progress with oversight from Sovereign-Rio Tinto Technical Committee with land rehabilitation now underway, including backfilling of the test pit |
Hydraulic mining trials at Kasiya were successfully concluded as part of the Kasiya Optimisation Study. Prior to the hydraulic mining trials, a dry mining trial successfully excavated a test pit to a depth of 20 metres. The mining trials confirm that the soft, friable Kasiya ore can be efficiently mined.
Managing Director and CEO, Frank Eagar commented: “I am pleased with the results of the mining trials at the test pit and now look forward to the rehabilitation demonstration stage, with backfilling of the pit already underway. Our findings from this Pilot Phase are constantly improving our understanding of Kasiya and how to optimise operations at this genuine Tier 1 project.”
Following the conclusion of mining trials, land rehabilitation demonstrations are now underway commencing with the backfilling of the test pit. The test pit, which was excavated using conventional dry mining techniques and a simple mobile excavator fleet, covered an area of 120 metres by 110 metres and was mined to a depth of 20 metres through the weathered ore at Kasiya. Mined material is being placed back into the pit and all areas will be graded. The backfilling stage is expected to conclude in December 2024.
As part of the Pilot Phase, the Company has constructed small rehabilitation demonstration pits that will be used to demonstrate multiple rehabilitation processes. Sovereign’s objective is to restore land after mining to conditions that achieve the same or better agricultural yields than prior to mining operations.
The Pilot Phase will demonstrate to local communities the successful rehabilitation of land for agricultural use post-mining. Results will also allow Sovereign to determine optimal approaches, providing critical information for Kasiya’s Environmental and Social Impact Assessment.
Sovereign remains focused on becoming a leading global supplier to the titanium and graphite industries. Kasiya is the world’s largest natural rutile deposit – the purest, highest-grade naturally occurring titanium feedstock – and the world’s second-largest flake graphite deposit – a battery mineral essential for the energy transition.
Figure 1: Hydraulic mining of Kasiya test pit
Figure 2: Water monitor demonstrating hydraulic mining of Kasiya material
Figures 3 & 4: Test pit during hydro-mining trials (above) and aerial view of test pit being backfilled
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Enquires |
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Frank Eagar, Managing Director & CEO South Africa / Malawi +27 21 065 1890 |
Sapan Ghai, CCO London +44 207 478 3900 |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
#BRES Blencowe Resources PLC – MoU signed for Graphite Beneficiation in Uganda
Blencowe Resources (LSE: BRES.L) has signed a Memorandum of Understanding (“MOU”) with Singaporean graphite sales and marketing specialist Triessence Limited (“Triessence”) and a leading Asian SPG and Anode material producer (“SPG Partner”). This partnership aims to establish Joint Venture (JV) for a graphite beneficiation facility in Uganda producing 99.95% purified graphite for lithium-ion batteries. This venture will set Blencowe apart from competitors focused solely on producing graphite concentrate and provides a life-of-mine offtake partner near the Orom-Cross Project, offering significant additional commercial advantages.
With this JV, Blencowe’s has strategically aligned with two highly experienced Asian graphite specialists to ensure successful delivery.
Highlights:
· JV Formation: Blencowe and Triessence will each hold a 50% stake in in the SPG facility, with the SPG Partner providing operational expertise. Blencowe retains 100% ownership of Orom-Cross.
· Value Addition: Upgrading 96% graphite concentrate to high-value battery ready 99.95% uncoated SPG significantly enhances commercial returns compared to selling concentrate.
· Risk Mitigation: Partnering with graphite industry experts mitigates operational risk.
· Capital Investment: Triessence will fund 50% of capital costs for the SPG facility.
· SPG Offtake Secured: Triessence will purchase all end product, ensuring consistent revenue and premium pricing for some of the first 99.95% SPG produced ex-China.
· Non-China Focus: SPG product ultimately to be sold to OEMs outside China via Triessence, providing strong political, commercial and funding advantages.
· Next steps: Definitive Feasibility Study (DFS) for the SPG facility will be integrated with Orom-Cross DFS for a comprehensive development strategy.
Executive Chairman Cameron Pearce commented:
“Blencowe has long recognised the substantial advantages downstream upgrading of graphite in-country can offer and securing experienced partners who have the expertise to help us deliver successful SPG production was essential. I am delighted to say that this MOU is another significant milestone in enhancing both the value and distinctiveness for our Company.”
“Our JV team will now focus on the SPG facility feasibility study and integrating it with the Orom-Cross DFS, providing a comprehensive solution that adds considerable value. We anticipate minimal additional costs for this study as we are utilising our partners’ existing vast experience for all costings and design work, and no further bulk sample testing or further resource drilling is needed.”
In-Country SPG Strategy
Selling 99.95% uncoated SPG (spheronised purified graphite) unlocks significantly higher returns than small flake 96% concentrate, leveraging the value from additional processing. Providing high-value SPG products into world markets, and particularly products generated outside of China, addresses a significant market gap, especially if China restricts purified graphite exports.
Blencowe’s exclusive sale of Orom-Cross concentrate to the proposed SPG facility ensures a life-of-mine offtake partner, whilst also allowing the Company to benefit by participating in the downstream sale of higher-value 99.95% uncoated SPG products. As one of the only ex-China producers of uncoated SPG this facility will likely command premium prices from OEMs seeking to diversify their SPG supply chains outside of China.
This downstream SPG strategy focuses only on upgrading the lower value small flake concentrate, which is roughly half of Orom-Cross’s output, while the more valuable large flake concentrate will continue to be sold into traditional graphite markets as concentrate. Blencowe recently announced its first MOU for sale of 15,000tpa large flake concentrate.
SPG Joint Venture
A new Ugandan company will be established for the JV to develop the SPG facility.
A feasibility study for the SPG facility, using Orom-Cross concentrate, will be initiated and will leverage the SPG Partner’s experience for costing and design work, with Blencowe handling in-country requirements. With the upgrade of substantial Orom-Cross concentrate to uncoated SPG as part of the 600-tonne bulk sample test process, a key part of the technical DFS has already been completed and paid for. This SPG study will later integrate into the broader Orom-Cross DFS, aligning both projects. Triessence will finance 50% of construction and handle international SPG sales. The SPG Partner, a global leader and one of the largest graphite companies in the world currently producing around 100,000tpa of uncoated SPG, will oversee operations under a management contract.
The SPG facility’s proximity to the Orom-Cross mine considerably reduces logistics costs for Blencowe and access to low-cost Ugandan hydropower supports a premium grade green 99.95% SPG product.
Commercial Advantages
By channelling Orom-Cross small flake concentrate into the nearby JV SPG facility Blencowe bypasses pricing pressures that other graphite peers will face selling their concentrate into competitive Asian markets. This will secure both sales volumes and favourable market pricing for Orom-Cross.
With a 50% stake in the SPG facility, Blencowe will further benefit from selling uncoated 99.95% SPG at a higher ~US$2,000 per tonne compared to ~US$500 per tonne for 96% concentrate. Proximity to the SPG facility will materially lower Orom-Cross current logistics and operating costs, enhancing overall project economics.
This downstream processing strategy, backed by experienced partners, may attract additional funding options from entities who recognise this long-term value opportunity. The U.S. International Development Finance Corporation (DFC) remains the preferred funding partner for Orom-Cross and supports this strategy, as does the Ugandan Government. Both offer valuable backing.
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 |
#SVML Sovereign Metals LTD – Outstanding Battery Anode Material Produced
Kasiya graphite concentrate confirmed to be an excellent feedstock for natural graphite anode materials suitable for battery production
· Kasiya natural graphite presents a unique, low-cost opportunity to develop lithium-ion battery supply chains outside of China
· Very high quality Coated Spherical Purified Graphite (CSPG) anode material produced from Kasiya graphite concentrate has performance characteristics comparable to the highest quality natural graphite battery material produced by dominant Chinese anode manufacturers
o Electrochemical testing achieved very high first cycle efficiencies of 94.2% to 95.8% supporting long battery life
o Excellent initial discharge capacities greater than 360mAh/g as required for highest quality natural graphite anode materials.
o Very low specific surface areas (known as BET) of ≤2.0m2/g minimising the loss of lithium in the first battery charging cycle
o Excellent tap densities of 1.11 to 1.18g/cm3 meaning higher electrical storage
· Outstanding anode material results are attributed to the unique geological setting of the highly weathered Kasiya orebody compared to fresh rock hosted graphite deposits, including:
o high purity of the natural flake,
o near perfect crystallinity, and
o very low levels of sulphur and other impurities.
· Further optimisation testwork to commence using additional concentrate being generated at pilot-scale facility in South Africa
· Results will form the basis for ongoing and future discussions with potential offtakers
Managing Director Frank Eagar commented: “These results confirm that Kasiya graphite concentrate will be an excellent anode material feedstock to the battery industry. Not only is the weathered, saprolite-hosted graphite easy to purify to very high-grades, the anode material produced meets the highest industry specifications. Along with the very low BET specific surface area and high tap densities (both resulting in excellent first cycle efficiencies and initial battery discharge capacities), Kasiya has the potential to become a dominant source of graphite supply ex-China. Combining these excellent results with one of the largest graphite resources globally, industry low operating costs and lowest global warming potential, Kasiya is presenting significant advantages over its graphite peers. We look forward to further testwork and market updates as we continue to develop Kasiya as a supplier of premium quality, cost competitive natural graphite concentrate.”
Classification 2.2: This announcement includes Inside Information
ENQUIRIES
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Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX: SVMLF) (the Company or Sovereign) is very pleased to announce an update on the downstream testwork conducted at leading independent consultancy ProGraphite GmbH (ProGraphite) in Germany.
The test work program demonstrated that CSPG produced from Kasiya natural flake graphite has performance characteristics comparable to the leading Chinese natural graphite anode materials manufacturers such as BTR New Material Group (BTR).
Electrochemical testing of the CSPG samples at a leading German institute achieved first cycle efficiencies (FCE) of 94.2% to 95.8%, with results above 95% a key specification for highest quality natural graphite anode materials under the Chinese standard.
Following spheronisation and purification testwork1 which produced spherical graphite with very high purities of 99.99%, the purified spherical graphite (PSG) samples were pitch coated and carbonised to produce CSPG.
The coating process produced CSPG with very low BET specific surface area of 2.0m2/g and lower and high tap densities of 1.11-1.18g/cm3 (Table 1).
A low specific surface area is required for anode materials to minimise the loss of lithium in forming a secondary protective coating on the anode material known as the Solid Electrolyte Interphase (SEI). The pitch coating process also assists in increasing the density of the anode material as measured by the tap density – a higher density assists in storing more electrical energy in the lithium-ion battery.
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Table 1: CSPG Results |
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CSPG Sample |
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Sample |
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D10 |
[µm] |
11.05 |
11.08 |
14.86 |
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D50 |
[µm] |
17.46 |
17.27 |
23.71 |
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D90 |
[µm] |
26.75 |
27.5 |
36.72 |
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Tap Density |
[g/cm3] |
1.11 |
1.12 |
1.18 |
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BET |
[m2/g] |
1.6 |
2.0 |
1.4 |
Electrochemical testing of the CSPG samples at a leading German institute achieved FCE of 94.2% to 95.8%, with results above 95% a key specification for highest quality natural graphite anode materials under the Chinese standard. A very high FCE minimises lithium losses in the initial formation cycles of a lithium-ion battery, supporting battery life. Kasiya CSPG also met the criteria for an initial discharge capacity of more than 360mAh/g (ampere-hours per gram) for highest quality anode materials, with initial capacities of 362-366mAh/g. These results will be used to fast-track discussions with potential offtakers.
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Table 2: Electrochemical Results – China CSPG Standard |
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CSPG Sample |
China Standard GB/T-24533-2019
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3 |
Grade I |
Grade II |
Grade III |
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First Cycle Efficiency |
[%] |
95.8 |
94.2 |
95.8 |
≥95 |
≥93 |
≥91 |
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Initial Capacity |
[mAh/g] |
362 |
364 |
366 |
≥360 |
≥360 |
≥345 |
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Furthermore, the testwork demonstrated that CSPG produced from Kasiya natural flake graphite has initial performance characteristics comparable to the leading Chinese natural graphite anode materials manufacturers such as BTR. BTR has a 20-year track record in the production of lithium-ion battery anode materials, is a dominant player in the market and has recently concluded anode material offtake agreements with global automotive companies including Ford. BTR’s highest specification CSPG materials, that have low swelling, long cycle life, good processability and outstanding electrochemical performance include their GSN17 and LSG17 products (with D50 of 17.0+/- 1.5μm).
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Table 3: Electrochemical Results – BTR CSPG products |
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CSPG Sample |
BTR3
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2 |
GSN 17 |
LSG 17 |
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First Cycle Efficiency |
[%] |
95.8 |
94.2 |
≥95 |
≥94 |
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Initial Capacity |
[mAh/g] |
362 |
364 |
≥360 |
≥355 |
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D50 |
[μm] |
17.5 |
17.3 |
17.0+/- 1.5 |
17.0+/- 1.5 |
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In December 2023, China imposed trade restrictions on graphite that required producers to apply to the government for permits to export high-grade graphite materials and related products. Given China’s dominance of natural graphite and graphite derived products such as CSPG, global EV production and Net Zero ambitions could be negatively impacted given the lack of anode industry development ex-China. In May 2024, the US government imposed a new 25% tariff on natural graphite from China, as part of a broader initiative that included an increase of tariffs on EVs and lithium-ion batteries.
High performance CSPG materials manufactured from Kasiya natural graphite present an opportunity for development of ex-China supply chains for battery anode materials. Sovereign believes that the outstanding electrochemical results for Kasiya CSPG are as a result of the unique geological setting of the Kasiya orebody. The near perfect crystallinity i.e. fully ordered graphite resulting from the very high metamorphic grade of the underlying host rock (paragneiss metamorphosed to granulite facies) and the high purity of the natural flake being assisted by the highly weathered nature of the ore.2 This is as opposed to fresh rock hosted graphite deposits which generally have much higher impurity levels including sulphur, which negatively impacts electrochemical performance. The very low sulphur profile of Kasiya graphite is due to the fact that the primary sulphide minerals have been altered to sulphates by the intense weathering. The sulphates are water soluble and are leached from the ore during weathering.
Further optimisation testwork for anode materials is planned, using additional graphite concentrate currently being generated at pilot-scale in South Africa. This material will also be used to provide offtaker evaluation samples.
A program for assessing Kasiya concentrate for traditional refractories and foundry applications has also been developed. The coarse component of the pilot plant concentrate will be used for this testwork program.
1 Refer to ASX Announcement “Downstream Testwork Demonstrates High Quality Graphite” dated 15 May 2024
2 Refer to ASX Announcement “Kasiya Graphite Shows Excellent Suitability For Use In Lithium Ion Batteries” dated 8 June 2023
3 BTR anode material specs taken from this webpage: https://www.btrchina.com/en/NegativeProducts/info.aspx?itemid=1069
Competent Person Statement
The information in this report that relates to Lithium-Ion Battery Testwork is based on information compiled by Dr Surinder Ghag, PhD., B. Eng, MBA, M.Sc., who is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr Ghag is engaged as a consultant by Sovereign Metals Limited. Dr Ghag has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Ghag consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Exploration Results (table 1) is based on information compiled by Mr Samuel Moyle, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Moyle is the Exploration Manager of Sovereign Metals Limited and a holder of ordinary shares and unlisted performance rights in Sovereign Metals Limited. Mr Moyle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moyle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
Appendix 1: JORC Code, 2012 Edition – Table 1
SECTION 1 – SAMPLING TECHNIQUES AND DATA
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Criteria |
JORC Code explanation |
Commentary |
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Sampling Techniques |
Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
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Metallurgical Composite Sample: The sample was a composite of 24 Hand Auger (HA) and Push Tube (PT) holes drilled in 2022 in the Kingfisher pit. All drilling samples within the pit shell were added to the composite resulting in a sample of 2,498kg. Specifically, the composite sample consisted of selected rutile mineralised zones from holes, NSHA0009, 0010, 0056, 0060, 0061, 0074, 0119, 0311, 0343, 0344, 0345, 0350 and NSPT 0011, 0013, 0014, 0015, 0017, 0020, 0021, 0023, 0024, 0025, 0026, 0027. The following workflow was used to generate a pre-concentrate graphite feed at AML: · Wet screen at 2mm to remove oversize · Two stage cyclone separation at a cut size of 45µm to remove -45µm material · Pass +45µm -2mm (sand) fraction through Up Current Classifier (UCC) · Pass UCC O/F through cyclone at cut point of 45µm · Pass UCC O/F cyclone U/F (fine) over MG12 Mineral Technologies Spiral · Pass UCC U/F (coarse) over MG12 Mineral Technologies Spiral · Spiral cons are combined for further processing. Fine and coarse gravity tailing samples contain approximately 75%-80% of the graphite present in the feed sample. The majority of the graphite lost is contained in the -45µm fines. |
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Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
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Placer Consulting (Placer) Resource Geologists have reviewed Standard Operating Procedures (SOPs) for the collection of HA and PT drill samples and found them to be fit for purpose. Drilling and sampling activities are supervised by a suitably qualified Company geologist who is present at all times. All bulk 1-metre drill samples are geologically logged by the geologist at the drill site. The primary metallurgical composite sample is considered representative for this style of mineralisation. |
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Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
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HA drilling was used to obtain 1-metre samples. The bulk metallurgical sample was a composite of selected samples from routine resource drilling. Existing rutile and graphite exploration results were used to determine the 1-metre intervals suitable to contribute to the two bulk sample composites. |
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Drilling Techniques |
Drill type (e.g. core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is oriented and if so, by what method, etc).
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Hand-auger drilling is completed with 75mm diameter enclosed spiral bits with 1-metrelong steel rods. Each 1m of drill sample is collected into separate sample bags and set aside. The auger bits and flights are cleaned between each metre of sampling to avoid contamination. Placer has reviewed SOPs for hand-auger drilling and found them to be fit for purpose and support the resource classifications as applied to the MRE. |
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Drill Sample Recovery |
Method of recording and assessing core and chip sample recoveries and results assessed.
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The configuration of drilling and nature of materials encountered results in negligible sample loss or contamination. Samples are assessed visually for recoveries. Overall, recovery is good. Drilling is ceased when recoveries become poor generally once the water table has been encountered. Auger drilling samples are actively assessed by the geologist onsite for recoveries and contamination. |
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Measures taken to maximise sample recovery and ensure representative nature of the samples.
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The Company’s trained geologists supervise auger drilling on a 1 team 1 geologist basis and are responsible for monitoring all aspects of the drilling and sampling process.
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Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
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No bias related to preferential loss or gain of different materials has occurred. |
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Logging |
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation mining studies and metallurgical studies.
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All individual 1-metre auger intervals are geologically logged, recording relevant data to a set template using company codes.
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Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.
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All logging includes lithological features and estimates of basic mineralogy. Logging is generally qualitative. |
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The total length and percentage of the relevant intersection logged
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100% of samples are geologically logged. |
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Sub-sampling techniques and sample preparation |
If core, whether cut or sawn and whether quarter, half or all core taken.
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Not applicable – no core drilling conducted.
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If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. |
Primary individual 1-metre samples from all HA and PT holes drilled are sun dried, homogenised and riffle split.
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For all sample types, the nature, quality and appropriateness of the sample preparation technique.
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Metallurgical Composite Sample: 1-metre intervals selected for the 2,498kg metallurgical sample were divided into weathering units. MOTT and PSAP material were combined and homogenised in preparation for dispatch to Australian laboratory Intertek for TGC assay. Per Australian import quarantine requirements the contributing SOIL/FERP material from within 2m of surface was kept separate to undergo quarantine heat treatment at Intertek Laboratory on arrival into Australia. The two sub samples (SOIL/FERP and MOTT/PSAP) were then dispatched from Intertek to AML Laboratory (AML). AML sub-sampled and assayed the individual lithologies prior to combining and homogenising the sample in preparation for test-work. |
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Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
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The sample preparation techniques and QA/QC protocols are considered appropriate for the nature of this test-work.
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Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
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The sampling best represents the material in situ. |
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Whether sample sizes are appropriate to the grain size of the material being sampled.
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The sample size is considered appropriate for the nature of the test-work. |
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Quality of assay data and laboratory tests |
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. |
Metallurgical Composite Sample: The following workflow was used to generate a graphite product; o Coarse and fine rougher graphite flotation o Polishing grind of coarse and fine rougher graphite concentrate o Cleaner flotation of coarse and fine graphite o Cleaner concentrate sizing at 180µm o Regrind of separate +180µm/-180µm fractions o Three stage recleaner flotation of +180µm/-180µm fractions
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For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
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Acceptable levels of accuracy and precision have been established. No handheld methods are used for quantitative determination.
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Nature of quality control procedures adopted (e.g. standards, blanks, duplicate, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.
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Acceptable levels of accuracy and precision have been established in the preparation of the bulk sample composites. |
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Verification of sampling & assaying |
The verification of significant intersections by either independent or alternative company personnel.
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No drilling intersections are being reported. |
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The use of twinned holes.
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No twin holes completed in this program.
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Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
All data was collected initially on paper logging sheets and codified to the Company’s templates. This data was hand entered to spreadsheets and validated by Company geologists.
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Discuss any adjustment to assay data.
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No adjustment to assay data has been made.
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Location of data points |
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
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A Trimble R2 Differential GPS is used to pick up the collars. Daily capture at a registered reference marker ensures equipment remains in calibration. No downhole surveying is completed. Given the vertical nature and shallow depths of the holes, drill hole deviation is not considered to significantly affect the downhole location of samples. |
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Specification of the grid system used. |
WGS84 UTM Zone 36 South. |
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Quality and adequacy of topographic control. |
DGPS pickups are considered to be high quality topographic control measures. |
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Data spacing & distribution |
Data spacing for reporting of Exploration Results. |
Metallurgical Composite Sample: The hand-auger holes contributing to this metallurgical were selected from pit area Kingfisher and broadly represent early years of mining as contemplated in the PFS (Approximately the first three years).
It is deemed that these holes should be broadly representative of the mineralisation style in the general area.
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Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. |
Not applicable, no Mineral Resource or Ore Reserve estimations are covered by new data in this report. |
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Whether sample compositing has been applied. |
Metallurgical Composite Sample: The sample was composited as described under Sampling Techniques in this Table.
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Orientation of data in relation to geological structure |
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known considering the deposit type
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No bias attributable to orientation of sampling has been identified. |
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If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
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All holes were drilled vertically as the nature of the mineralisation is horizontal. No bias attributable to orientation of drilling has been identified. |
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Sample security |
The measures taken to ensure sample security |
Samples are stored in secure storage from the time of drilling, through gathering, compositing and analysis. The samples are sealed as soon as site preparation is complete.
A reputable international transport company with shipment tracking enables a chain of custody to be maintained while the samples move from Malawi to Australia or Malawi to Johannesburg. Samples are again securely stored once they arrive and are processed at Australian laboratories. A reputable domestic courier company manages the movement of samples within Perth, Australia.
At each point of the sample workflow the samples are inspected by a company representative to monitor sample condition. Each laboratory confirms the integrity of the samples upon receipt. |
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Audits or reviews |
The results of any audits or reviews of sampling techniques and data
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It is considered by the Company that industry best practice methods have been employed at all stages of the exploration.
Malawi Field and Laboratory visits have been completed by Richard Stockwell in May 2022. A high standard of operation, procedure and personnel was observed and reported.
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SECTION 2 – REPORTING OF EXPLORATION RESULTS
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Criteria |
Explanation |
Commentary |
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Mineral tenement & land tenure status |
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environment settings. |
The Company owns 100% of the following Exploration Licences (ELs) under the Mines and Minerals Act 2019 (Malawi), held in the Company’s wholly-owned, Malawi-registered subsidiaries: EL0609, EL0582, EL0492, EL0528, EL0545, EL0561, EL0657 and EL0710. A 5% royalty is payable to the government upon mining and a 2% of net profit royalty is payable to the original project vendor. No significant native vegetation or reserves exist in the area. The region is intensively cultivated for agricultural crops. |
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The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. |
The tenements are in good standing and no known impediments to exploration or mining exist. |
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Exploration done by other parties
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Acknowledgement and appraisal of exploration by other parties. |
Sovereign Metals Ltd is a first-mover in the discovery and definition of residual rutile and graphite deposits in Malawi. |
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Geology |
Deposit type, geological setting and style of mineralisation |
The rutile deposit type is considered a residual placer formed by the intense weathering of rutile-rich basement paragneisses and variable enrichment by eluvial processes. Rutile occurs in a mostly topographically flat area west of Malawi’s capital, known as the Lilongwe Plain, where a deep tropical weathering profile is preserved. A typical profile from top to base is generally soil (“SOIL” 0-1m) ferruginous pedolith (“FERP”, 1-4m), mottled zone (“MOTT”, 4-7m), pallid saprolite (“PSAP”, 7-9m), saprolite (“SAPL”, 9-25m), saprock (“SAPR”, 25-35m) and fresh rock (“FRESH” >35m). The low-grade graphite mineralisation occurs as multiple bands of graphite gneisses, hosted within a broader Proterozoic paragneiss package. In the Kasiya areas specifically, the preserved weathering profile hosts significant vertical thicknesses from near surface of graphite mineralisation. |
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Drill hole information |
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northings of the drill hole collar; elevation or RL (Reduced Level-elevation above sea level in metres of the drill hole collar); dip and azimuth of the hole; down hole length and interception depth; and hole length |
All intercepts relating to the Kasiya Deposit have been included in public releases during each phase of exploration and in this report. Releases included all collar and composite data and these can be viewed on the Company website. There are no further drill hole results that are considered material to the understanding of the exploration results. Identification of the broad zone of mineralisation is made via multiple intersections of drill holes and to list them all would not give the reader any further clarification of the distribution of mineralisation throughout the deposit.
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If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case |
No information has been excluded. |
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Data aggregation methods |
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off grades are usually Material and should be stated. |
No data aggregation was required. |
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Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. |
No data aggregation was required. |
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The assumptions used for any reporting of metal equivalent values should be clearly stated. |
Not applicable |
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Relationship between mineralisation widths & intercept lengths |
These relationships are particularly important in the reporting of Exploration Results. |
The mineralisation has been released by weathering of the underlying, layered gneissic bedrock that broadly trends NE-SW at Kasiya North and N-S at Kasiya South. It lies in a laterally extensive superficial blanket with high-grade zones reflecting the broad bedrock strike orientation of ~045° in the North of Kasiya and 360° in the South of Kasiya. No drilling intercepts are being reported. |
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If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. |
The mineralisation is laterally extensive where the entire weathering profile is preserved and not significantly eroded. Minor removal of the mineralised profile has occurred where alluvial channels cut the surface of the deposit. These areas are adequately defined by the drilling pattern and topographical control for the resource estimate. |
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If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’. |
No drilling intercepts are being reported. |
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Diagrams |
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of the drill collar locations and appropriate sectional views. |
Refer to figures in previous releases. These are accessible on the Company’s webpage. |
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Balanced reporting |
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high-grades and/or widths should be practiced to avoid misleading reporting of exploration results. |
All results are included in this report and in previous releases. These are accessible on the Company’s webpage. |
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Other substantive exploration data |
Other exploration data, if meaningful and material, should be reported including (but not limited to: geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. |
Limited lateritic duricrust has been variably developed at Kasiya, as is customary in tropical highland areas subjected to seasonal wet/dry cycles. Lithological logs record drilling refusal in just under 2% of the HA/PT drill database. No drilling refusal was recorded above the saprock interface by AC drilling. Sample quality (representivity) is established by geostatistical analysis of comparable sample intervals.
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Further work |
The nature and scale of planned further work (e.g. test for lateral extensions or depth extensions or large-scale step-out drilling). |
The Company is currently in a project optimisation phase with various work programs underway. |
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Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. |
Refer to diagrams in previous releases. These are accessible on the Company’s webpage. |
#BRES Blencowe Resources – 600 TONNE PROCESSING GRAPHITE TO BATTERY READY SPG
Blencowe Resources Plc (LSE: BRES) announces the successful completion of the last internal stage of the graphite pre-qualification test program, being upgrading of substantial quantity of small flake concentrate into battery ready 99.95% uncoated SPG by leading SPG producer, Qingdao TaiDa Carbon (“TaiDa”).
Definitive Feasibility Study Progress
Key DFS milestones now achieved, including:
· Metallurgical testing: Completion of 600 tonne commercial scale test work on Orom-Cross concentrate.
· SPG Production: Large volume of battery-ready uncoated SPG successfully produced by TaiDa and now sent for testing by potential tier one Asian customers.
· Water Borefield Completion: Essential water borefield at Orom-Cross now completed.
· Micronisation Testing: Successfully completed at AETC in Chicago producing all five key product ranges.
· ESIA Update: Updated Environmental and Social Impact Assessment submitted for local authority approval.
· ESG Update: Successful certification of Environmental and Social Governance (“ESG”), policies and procedures.
SPG Product Samples Shipped – Final Step Toward Offtake Agreements
Blencowe has processed fine flake concentrate into commercial scale volumes of high quality uncoated SPG (99.95% spheronised, purified graphite) via graphite industry leader TaiDa, and commenced delivery of samples to potential tier one customers in South Korea and Japan for their in-house testing. This is the final step for qualification of Orom-Cross material for commercial use by these potential customers and is the pathway toward securing future offtake agreements. Samples are also being supplied to major Chinese battery manufacturers.
Senior management are currently visiting the testing firms along with various Asian OEMs to advance discussions towards offtake agreements.
Additional Value-Added Testing Completed
Blencowe has successfully concluded further testing with leading US graphite expert American Energy Technologies (“AETC”) in Chicago to further beneficiate fines concentrate into a range of high value specialised micronised products. These niche products, offering up to 10 times the value of basic fines concentrate, can add significant additional value to Orom-Cross ahead and are thus being integrated into the DFS plant design and overall production strategy. Samples will now be tested by potential offtakers as the next step towards sale agreements.
Uganda Operations Update
Blencowe has submitted an updated ESIA to reflect the revised Orom-Cross operation plan, enhancing content of environmental and social commitments to align with guidelines from potential funding parties.
A water borefield at Orom-Cross has also been completed, ensuring sustainable life-of-mine water supply for the project and local communities. The project also included refurbishing bores and establishing water supplies for the local school and clinic as part of Blencowe’s social commitment.
Blencowe has also successfully achieved ESG accreditation through well-known industry agency, Digbee ESG, for its current policies and planning on ESG. This certification is a major step towards satisfying both the investment community and industry expectations for sustainable and environmentally responsible operations at Orom-Cross.
Significant progress continues within the DFS, including plant design, power supply studies, and infrastructure development.
Cameron Pearce, Executive Chairman commented;
“We continue to make solid progress, including the completion of the 600-tonne bulk sample metallurgical test work from source material to battery-ready products. We aim to build on our initial offtake agreement already announced (for 15,000tpa large flake concentrate) and gain further endorsement from potential tier one consumers of SPG. Once we have assembled a range of customers and offtake agreements, we have effectively de-risked the project ahead of project financing and construction, therefore the next few months will be highly value accretive for the Company.
We expect this final external customer testing, including shipping product within Asia, to take approximately one month to complete, and thereafter we will be able to discuss offtake agreements with our senior management team visiting various Asian parties regularly.”
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
#SVML Sovereign Metals LTD – Trading on OTCQX Market
· Sovereign upgrades to the OTCQX Market, the top tier of the OTC Markets, providing access to a broader eligible U.S. investor base
· OTCQX quotation follows increased U.S. investor and strategic interest in Sovereign and its Kasiya Rutile-Graphite Project in Malawi
· Kasiya has the potential to be the world’s largest, lowest-cost producer of rutile, which is the purest form of titanium feedstock, and a long-term secure source of graphite supply outside of China
· U.S. Department of Energy has designated both titanium and graphite as critical minerals due to national security concerns. China currently dominates global supply of both minerals
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Sovereign Metals Limited (ASX: SVM; AIM: SVML; OTCQX: SVMLF) (Sovereign or the Company) is pleased to announce that its shares have commenced trading on the OTCQX® Best Market (OTCQX) under the ticker symbol SVMLF.
The OTCQX is the highest market tier of OTC Markets on which over 12,000 U.S. and global securities trade. Sovereign previously traded on the OTC Pink Market and has been upgraded to the OTCQX as it meets high financial standards, follows best-practice corporate governance and has demonstrated compliance with applicable securities laws. Trading on OTCQX began on 5 July 2024 and will enhance the visibility and accessibility of Sovereign to U.S. investors.
Sovereign is focused on becoming a market leader in supplying two critical minerals to global markets: titanium, in the form of rutile, and graphite. China currently dominates the supply of both critical minerals.
Rutile is the purest, highest-grade natural form of titanium dioxide (TiO2) and is the preferred feedstock in manufacturing titanium pigment and producing titanium metal. Titanium is essential for various industries, including aerospace, defence, pigments, medical and consumer technologies. According to the U.S. Geological Survey, China and Russia control ~70% of the global primary titanium supply chain. Currently, the U.S. relies entirely on foreign sources for titanium sponge, yet based on the U.S. Commerce Department’s Bureau of Industry and Security, titanium supports 15 out of 16 critical infrastructure sectors deemed essential by the federal government.
Graphite is vital for the energy transition as the largest component of lithium-ion batteries used in electric vehicles and other energy storage solutions. Graphite anode material can be up to 50% of the mass of a typical lithium-ion battery. According to S&P Global, in 2023, 77% of the world’s graphite production came from China, with the U.S. importing 42% of its graphite supply from China. In December 2023, China imposed several restrictions on the export of Graphite concentrate. In May 2024, the US government imposed a 25% tariff on all natural graphite imported from China from 2026 onwards.
Sovereign’s 100% owned Tier-One Kasiya Rutile-Graphite Project (Kasiya), located in the southeast African country of Malawi, is both the world’s largest known rutile deposit and second-largest flake graphite deposit. Kasiya can become a long-term secure source of natural graphite supply outside of China.
Through numerous technical studies, Sovereign has already confirmed that the Kasiya project could be the world’s largest and lowest-cost producer of rutile and graphite and is currently undertaking an optimisation study. Sovereign’s strategic investor and one of the world’s largest and most accomplished global mining companies, Rio Tinto continues to provide assistance and advice on technical and marketing aspects of Kasiya. With sustainability a core pillar of Sovereign’s strategy, Kasiya would also have the lowest greenhouse gas emissions of any high-grade titanium feedstock or graphite producer.
NOTICE OF CHANGE OF INTERESTS OF SUBSTANTIAL HOLDER
Sovereign Metals Limited (ASX: SVM, AIM: SVML) (Sovereign or the Company) advises that it was notified today via the filing of a Form 604 with the Australian Securities Exchange (ASX) that Rio Tinto Mining and Exploration Limited (Rio Tinto) provided a notice of change of interests of substantial holder (as defined by the Corporations Act 2001) of the Company as of 4 July 2024, having increased its shareholding in the Company from 83,095,592 ordinary shares, representing 15% of the Company’s issued share capital as at the date of its previous notice, to 118,085,108 ordinary shares, representing 19.76% of the Company’s issued share capital, following the issue of 439,918 shares as approved by Sovereign shareholders on 23 August 2023 and the issue of 34,549,598 shares pursuant to the exercise of options on 4 July 2024.
The Form 604 can be viewed in full via the below link:
https://www.investi.com.au/api/announcements/svm/511e90f4-659.pdf
ENQUIRIES
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Dylan Browne +61(8) 9322 6322 |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
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Frank Eagar (South Africa/Malawi) +27 21 065 1890 |
Sam Cordin (Perth) +61(8) 9322 6322 |
Sapan Ghai (London) +44 207 478 3900
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
#BRES Blencowe Resources PLC – Conversion of 600 tonnes bulk sample to Graphite Concentrate
Blencowe Resources is pleased to report it has completed a critical step in commercial scale testing, by converting 600 tonnes of in situ raw material into 30 tonnes of graphite concentrate. The 600 tonnes bulk sample conversion was undertaken by Jilin New Technology Graphite Co. (“Jilin”), a market leader in graphite processing, with results reconfirming the attractive qualities of Orom-Cross graphite.
Highlights:
· Commercial Scale delivery of concentrate: 600 tonnes of raw material shipped to China several months ago has now been successfully upgraded to 30 tonnes of 96% concentrate.
· Maintaining High Quality: testing indicates that the Orom-Cross concentrate delivered in this sample size maintains the same high quality as previous smaller scale tests.
· Bulk concentrate available: Blencowe now has substantial quantity of both large and small flake concentrate products to apply further testing for potential offtakers.
· Final Stage testing on Small Flakes: Leading SPG producer Qindao Taida Carbon Co Ltd (“Taida”) to beneficiate 20 tonnes of small flake concentrate into 10 tonnes of 99.95% uncoated SPG (spheronised purified graphite) over the next one month as the final step in the qualification process.
· Ongoing Tier-One Discussions: The bulk sample testing and qualification process is going to plan, with the end goal ultimately being offtake agreements with several tier one partners.
· Hurdle achieved for further DFC grant funds: The completion of this stage of the test work is one of the milestones for another tranche of DFC grant funding to be released shortly.
Jilin Concentrate
Jilin, who successfully completed a 100 tonne bulk sample for Blencowe in 2023, has now completed a 600t bulk sample to concentrates. Approximately 30 tonnes of concentrate has been produced, which represents a substantial sample size for the Company to use for ongoing trials at various offtakers, for both large and small flake products.
Test results indicate a very high quality 96% concentrate for small flake products and 96-97% concentrate for large flake products (+100mesh, +80mesh and +50mesh). The concentrate mix is 55/45 as small/large flakes.
Jilin has already highlighted its support for the larger flake Orom-Cross concentrate product by signing an MOU for 15,000tpa, which was announced to the market in May 2024.
Next Step: SPG Production
Work has now begun at one of the most experienced graphite beneficiation companies in the world, Qingdao Taida Carbon Co Ltd, to deliver 10 tonnes of high quality uncoated SPG product from the small flake concentrate. This has been successfully completed previously via smaller scale testing but this will be the first commercial scale delivery of SPG from Orom-Cross to provide necessary samples for high profile tier one offtakers to test in their own facilities. Once the OEM testing is completed by end of the June quarter Orom-Cross will effectively be qualified and have the ability to move to offtake agreements for all end products used in batteries.
Taida has been producing uncoated SPG for over two decades and has one of the most advanced facilities in China, and is generally regarded as one of the leading experts in anode-ready graphite products worldwide. Having Taida expertise manage Orom-Cross concentrate through to SPG is a key advantage as this company has the skill and prowess to deliver the best end results.
Blencowe is developing a broader graphite strategy to incorporate downstream processing in Uganda to deliver 99.95% SPG made in-country, and will be looking to include leading experts such as Taida within that strategy. This proposed facility would be the first commercial scale SPG operation outside of China and Blencowe would produce a valuable downstream product that other graphite mining peers cannot easily replicate. The Company will continue to provide updates as this strategy evolves.
Offtake Agreements
The process to complete all necessary metallurgical test work, including bulk sample testing, is a pre-requisite for all graphite miners that want to sell their end products into battery markets. End users are particularly discerning and will not consider offtake agreements until this work is adequately completed and qualification is therefore attained. Blencowe has been guided through this process by parties who have successfully completed this qualification previously, and using experts who understand the nuances of all the products, and how to get the best out of what Orom-Cross has to offer.
The end target is offtake agreements for 100% of the products that Blencowe will mine and process from Orom-Cross, and to achieve the highest quality that builds strong tier one relationships and delivers the highest prices. The Company is moving swiftly towards qualification and with that the potential for offtake partnerships with some of the leading brand names in this business.
Funding
The completion of the conversion of raw material into concentrate represents one of the milestones to allow for further DFC (Development Finance Corporation) grant funds to be released shortly.
Executive Chairman Cameron Pearce commented:
“We have highlighted this bulk sample test requirement as a key component of the Definitive Feasibility Study and we have undergone this process using some of the most experienced graphite producers in the world, and in doing so we have opened some interesting doors for additional value-add strategy. We will continue to press forward to get to our goal of having tier one offtake agreements in place as soon as possible for all of our end products, which will underline the unique status of Blencowe Resources as a standout graphite producer for the future.”
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 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.
The Times – Rio Tinto digs deep for African mine, exercising another £9.7m in investment options in Sovereign Metals
Sovereign Metals #SVML featured by Emma Powell in The Times
Rio Tinto digs deep for African mine, exercising another £9.7m in investment options in Sovereign Metals.
Rio has the option to become the operator of the #Kasiya project on arm’s length terms & to gain marketing rights to 40% of products
#SVML Sovereign Metals LTD – Malawi Rail Upgrades Underway
Malawi Rail Upgrades Underway
· Upgrading of the 399km Nkaya-Mchinji section of railway currently underway as part of Government of Malawi’s “Rail Strategy and Growth Plan”
· Railway runs across Sovereign’s Kasiya Rutile-Graphite tenements from Mchinji at the Malawi-Zambia border to Nkaya Junction, where it connects to the Nacala Logistics Corridor providing an export route through the deep-water port of Nacala
· Refurbishment of the railway will improve efficiency and capacity, and is being undertaken by Central and Eastern African Railway Company (CEAR) with completion expected by end of 2024
· Upgrade works include refurbishing rail bridges and reballasting along the section through Kasiya to increase maximum axle load from 15 tonnes to 18 tonnes
· Upgrade of the line section through the Kasiya Project area is near complete, running from Lilongwe District southward to the Nacala Logistics Corridor
· Nacala Logistics Corridor is the preferred logistics route for exporting Sovereign’s rutile and graphite products to global customers, with the Sena Rail Line to the Port of Beira offering a secondary route
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to report that upgrading of the 399km Nkaya-Mchinji Section Railway (Railway) connecting the Malawi-Zambia border to the Nacala Logistics Corridor (NLC) and which runs across the Company’s Kasiya Rutile-Graphite Project (Kasiya or Project) tenements, is underway. Refurbishment of that part of the Railway mainline which connects the Kanengo junction in the Lilongwe District, where Kasiya is located, to the NLC junction at Nkaya is near completion.
Figure 1: CEAR undertaking upgrade works on a railway bridge connecting Kasiya to the NLC
Rehabilitation of the Railway is an initiative by Malawi’s Ministry of Transport and Public Works and forms part of the Government of Malawi’s Rail Strategy and Growth Plan, which has the stated mission “to facilitate the provision of a safe, efficient, and sustainable rail transport system” to “promote socio-economic development.”
Upgrade works will increase efficiency and capacity of the Railway and are being undertaken by CEAR. Completion is planned for the end of 2024. Works include refurbishing railway bridges and reballasting to handle increased load-bearing capacity from a current maximum axle load of 15 tonnes to 18 tonnes.
Managing Director Frank Eagar commented: “Kasiya already benefits from exceptional existing infrastructure in central Malawi. This refurbishment project re-affirms Kasiya’s logistics solution with sufficient rail capacity, enhanced reliability and a direct connection to the deep-water export Port of Nacala. The infrastructure investment by CEAR and Nacala Logistics along with approvals from the Malawi Government is a demonstration of the country’s commitment to achieving its major economic development goals which include developing the mining industry and increasing Malawi’s export market.”
Figure 2: Upgrade works at a railway bridge on the Nkaya-Mchinji Section Railway
Kasiya benefits from two options for transporting its rutile and graphite products from the mine operations to seaports, being the Nacala Logistics Corridor to the Port of Nacala and the Sena Rail Line to the Port of Beira (Beira Corridor). The current upgrades to the Nkaya junction improve access to the NLC and will ultimately also improve access to the Beira Corridor.
The NLC offers the preferred logistics route to the deep-water Indian Ocean port of Nacala to export to global markets. This established and operation-ready logistics infrastructure provides significant capital and operating cost savings to Kasiya. To access the NLC, Sovereign plans to construct a 6km rail spur to connect directly with the processing plant, increasing efficiencies in handling inbound and outbound freight compared to any road alternative.
The Beira Corridor, comprised of the Sena Rail Line and the Port of Beira, provides Sovereign with a second route to export markets and is currently undergoing its own upgrade works. Last year, the Beira Development Corridor Agreement was approved, with the objective of connecting the Democratic Republic of Congo, Zambia, Zimbabwe, and Malawi to the Mozambican Port of Beira through road and rail networks. As Mozambique’s second largest port, the Port of Beira is a significant driver of the region’s economy and an important gateway for global trade, handling a wide variety of containerised and bulk cargo. The Beira Development Corridor Agreement project aims to eliminate logistical bottlenecks for international and intra-African trade. The African Development Bank (AfDB) is a major financier of the project.
Figure 3: Nacala Logistics Corridor with section currently being upgraded in orange
Figure 4: Port of Nacala, Mozambique
Figure 5: Port of Beira, Mozambique (Source: Cornelder de Moçambique)
Figure 6: A Nacala Logistics Corridor train
ENQUIRIES
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Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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|
|
|
Buchanan |
+ 44 20 7466 5000 |
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
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END
#BRES Blencowe Resources PLC – Half-year Report
The Company is pleased to announce its Interim Results for the six-month period to 31 March 2024.
Electronic copies of the report will be available at the Company’s website www.blencoweresourcesplc.com
For further information please contact:
|
Blencowe Resources Sam Quinn
|
Tel: +44 (0) 1624 681 250
|
|
Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
|
Tavira Securities Limited Jonathan Evans |
Tel: +44 (0)203 192 1733 jonathan.evans@tavirasecurities.com
|
Interim Management Report
This report covers the period 30 September 2023 to 31 March 2024, and subsequent events to 30 April 2024.
Work has been progressing on many fronts, on four continents, as the Orom-Cross Definitive Feasibility Study “(DFS”) gathers momentum.
In September the long-awaited Technical Assistance Grant Agreement (“TAG”) was signed with the US Government’s private sector investment arm, the Development Finance Corporation (“DFC”). This is a US$5 million grant awarded to Blencowe to assist with DFS costs and it is with pleasure I note that Blencowe is the first pre-production graphite company to receive such a grant from the US Government. Aside from the obvious advantages of having approximately 40% of our overall DFS costs being funded for free the credibility of both our Company and our Orom-Cross project are both significantly raised by having a partner of this calibre. Blencowe wishes to state once again our appreciation to DFC for this grant and all efforts will be made to deliver a first class DFS as a result.
To date US$3 million of this grant funding has been received as tranches are delivered on DFS milestones being achieved. It is our expectation that the final US$2 million will be received over the next six months for further work and ultimately completion of DFS. In addition, DFC is mandated to play a role as lead partner in a funding solution for Orom-Cross implementation ahead, and management are working closely with DFC to ensure that this will happen as substantial funding solutions remain the largest challenge for any new graphite project, so to have DFC involved adds significant weight and prestige, and a potential funding party with US$5 million skin in the game.
During this period several key milestones have been met with regards to actual DFS work. In 2H 2023 a 100-tonne bulk sample was mined and delivered to a technical facility in northern China which is a leading expert on graphite processing, and this ore was then beneficiated into 96% LOI concentrate. This in turn provides offtakers with the knowledge that commercial scale processing of Orom-Cross ore can deliver same high quality results as all lab-scale testing has shown to date, and secondly to provide a substantial quantum of 96% concentrate for Blencowe to send to various parties as samples, for testing and review. Following the success of this action, and the request of several tier one potential offtake partners, Blencowe has more recently mined a further 600-tonne bulk sample and sent it to the same facility, for the same reasons. This latest sample will also be beneficiated beyond 96% concentrate to a 99.95% uncoated SPG (spheronised, purified graphite) which is very near to what is used in the lithium-ion battery as graphite content.
Ultimately Blencowe is seeking offtake contracts and this commercial scale test work is designed to provide the samples and the results to qualify Orom-Cross product for these contracts, which themselves form an integral part of the DFS.
Other work continues within Uganda on infrastructure, community relations, environmental updates and all other key aspects of the DFS, and Blencowe remains working towards end-2024 as the delivery date for the DFS – subject to all necessary funding received to deliver as such.
Specialist technical work has also been underway in this period in the USA, considering the beneficiation of Orom-Cross concentrates to various high end products, up to 99.99% which is military grade. To date all work has been successful and provided evidence Orom-Cross has one of the most pure concentrates and upgraded products and this will bode well in future offtake discussions.
Despite all of this progress the Company is facing macro-challenges and the UK market remains flat, which has a direct impact on both the share price and market value. Blencowe will continue to market its achievements and remains positive on the medium and longer term outlook for graphite. We will continue to build our project and add value as this will ultimately be significant as demand continues to rise, while supply of graphite (particularly high quality) remains static.
We thank our shareholders and other stakeholders for their continued support and we look forward to continuing to kick goals ahead to deliver the DFS and success for the Company.
Mike Ralston
Chief Executive Officer
Responsibility Statement of the Directors in respect of the Interim Report
The Directors are responsible for preparing the Interim Financial Statements in accordance with applicable law and regulations. In addition, the Directors have elected to prepare the Interim Financial Statements in accordance with International Financial Reporting Standards (“IFRSs”), as adopted by the United Kingdom (“UK”).
The Interim Financial Statements are required to give a true and fair view of the state of affairs of the Group and of the profit or loss of the Group for that period.
In preparing these Interim Financial Statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently;
· present information and make judgements that are reasonable, prudent and provides relevant, comparable and understandable information;
· provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particulars transactions, other events and conditions on the entity’s financial position and financial performance; and
· make an assessment of the Group’s ability to continue as a going concern.
The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Group’s transactions and disclose with reasonable accuracy at any time its financial position of the Group to enable them ensure that the financial statements comply with the requirements of the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and Interim Financial Statements. Legislation governing the preparation and dissemination of Interim Financial Statements may differ from one jurisdiction to another.
We confirm that to the best of our knowledge:
· the Interim Financial Statements, prepared in accordance with International Financial Reporting Standards as adopted by the UK, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group for the period;
· the Director’s report includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal risks and uncertainties that they face; and
· the interim report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the group’s performance, business model and strategy.
Consolidated Statement of Comprehensive Income for the six month period ended 31 March 2024
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 months ended 30 Sep 2023 |
||
|
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
Notes |
GBP |
GBP |
GBP |
|
|
|
|
|
||
|
Exploration costs |
(23,669) |
(16,642) |
(53,347) |
|
|
Administrative fees and other expenses |
5 |
(682,486) |
(446,424) |
(1,298,872) |
|
Operating loss |
|
(706,155) |
(463,066) |
(1,352,219) |
|
|
|
|
||
|
Finance costs |
(19,685) |
(23,010) |
(45,748) |
|
|
Loss before tax |
|
(725,840) |
(486,076) |
(1,397,967) |
|
|
|
|
||
|
Income tax |
– |
– |
– |
|
|
|
|
|
||
|
Loss after tax |
|
(725,840) |
(486,076) |
(1,397,967) |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Exchange differences on translation of foreign operation |
|
64,153 |
7,807 |
31,282 |
|
Other comprehensive income, net of tax |
|
64,153 |
7,807 |
31,282 |
|
|
|
|
|
|
|
Total comprehensive loss |
|
(661,687) |
(478,269) |
(1,366,685) |
|
|
|
|
|
|
|
Basic and diluted loss per share (pence) |
10 |
(0.31) |
(0.28) |
(0.70) |
There was no other comprehensive income for the period ended on 31 March 2024.
The accompanying notes on form an integral part of the Interim Financial Statements.
Consolidated Statement of Financial Position as at 31 March 2024
|
|
As at 31 Mar 2024 |
As at 31 Mar 2023 |
As at 30 Sept 2023 |
|
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Notes |
GBP |
GBP |
GBP |
|
|
|
|
|
|
|
|
Non-Current Assets |
6 |
7,061,967 |
7,065,820 |
7,604,564 |
|
|
|
|
|
|
|
Current assets |
||||
|
Trade and other receivables |
7 |
113,470 |
135,901 |
31,863 |
|
Cash and cash equivalents |
444,991 |
130,740 |
129,853 |
|
|
Total current assets |
|
558,461 |
266,641 |
161,716 |
|
Total assets |
7,620,428 |
7,332,461 |
7,766,280 |
|
|
Current liabilities |
||||
|
Creditors: Amounts falling due within one year |
8 |
(1,238,944) |
(414,843) |
(1,076,169) |
|
Total current liabilities |
|
(1,238,944) |
(414,843) |
(1,076,169) |
|
Non-current liabilities |
||||
|
Surface liabilities |
9 |
(783,549) |
(785,520) |
(818,915) |
|
Total liabilities |
(2,022,493) |
(1,200,363) |
(1,895,084) |
|
|
Net assets |
|
5,597,935 |
6,132,098 |
5,871,196 |
|
Equity |
||||
|
Share capital |
12 |
1,377,801 |
1,275,066 |
1,338,566 |
|
Share premium |
12 |
8,986,590 |
8,099,579 |
8,637,399 |
|
Warrants reserves |
428,342 |
402,148 |
428,342 |
|
|
Translation reserve |
94,892 |
7,264 |
30,739 |
|
|
Retained earnings |
(5,289,690) |
(3,651,959) |
(4,563,850) |
|
|
Total equity |
|
5,597,935 |
6,132,098 |
5,871,196 |
The accompanying form an integral part of the Interim Financial Statements.
|
|
Share capital |
Share premium |
Share option reserves |
Retained earnings |
Translation reserve |
Total equity |
|
GBP |
GBP |
GBP |
GBP |
GBP |
GBP |
|
|
Balance as at 30 Sep 2022 |
1,181,316 |
7,480,829 |
402,148 |
(3,165,883) |
(543) |
5,897,867 |
|
Total comprehensive loss for 6 months |
|
|
|
|
|
|
|
Loss for the period |
– |
– |
– |
(486,076) |
– |
(486,076) |
|
Total comprehensive loss |
– |
– |
– |
(486,076) |
– |
(486,076) |
|
Contributions from equity holders |
||||||
|
New shares issued |
93,750 |
656,250 |
– |
– |
– |
750,000 |
|
Share issue costs |
– |
(37,500) |
– |
– |
– |
(37,500) |
|
Exchange differences on translation |
– |
– |
– |
– |
7,807 |
7,807 |
|
Total contributions from equity holders |
93,750 |
618,750 |
– |
– |
7,807 |
720,307 |
|
Balance as at 31 Mar 2023 |
1,275,066 |
8,099,579 |
402,148 |
(3,651,959) |
7,264 |
6,132,098 |
|
|
|
|
|
|
|
|
|
Total comprehensive loss for 6 months |
|
|
|
|
|
|
|
Loss for the period |
– |
– |
– |
(911,891) |
– |
(911,891) |
|
Total comprehensive loss |
– |
– |
– |
(911,891) |
– |
(911,891) |
|
Contributions from equity holders |
|
|
|
|
|
|
|
New shares issued |
63,500 |
571,500 |
– |
– |
– |
635,000 |
|
Share issue costs |
– |
(33,680) |
– |
– |
– |
(33,680) |
|
Warrants reserve |
– |
– |
– |
– |
– |
– |
|
Exchange differences on translation of foreign operations |
– |
– |
26,194 |
– |
23,475 |
49,669 |
|
Total contributions from equity holders |
63,500 |
537,820 |
26,194 |
– |
23,475 |
650,989 |
|
|
|
|
|
|
|
|
|
Balance as at 30 Sep 2023 |
1,338,566 |
8,637,399 |
428,342 |
(4,563,850) |
30,739 |
5,871,196 |
Consolidated Statement of Changes in Equity for the six month period ended 31 March 2024
|
Total comprehensive loss for 6 months |
||||||
|
Loss for the period |
– |
– |
– |
(725,840) |
– |
(725,840) |
|
Total comprehensive loss |
– |
– |
– |
(725,840) |
– |
(725,840) |
|
Contributions from equity holders |
|
|
|
|
|
|
|
New shares issued |
39,235 |
353,115 |
– |
– |
– |
392,350 |
|
Share issued costs |
– |
(3,924) |
– |
– |
– |
(3,924) |
|
Exchange differences on translation of foreign operations |
– |
– |
– |
– |
64,153 |
64,153 |
|
Total contributions from equity holders |
39,235 |
349,191 |
– |
– |
64,153 |
452,579 |
|
Balance as at 31 Mar 2024 |
1,377,801 |
8,986,590 |
428,342 |
(5,289,690) |
94,892 |
5,597,935 |
The accompanying notes on form an integral part of the Interim Financial Statements.
Consolidated Statement of Cash Flows for the six month period ended 31 March 2024
|
As at 31 Mar 2024 |
As at 31 Mar 2023 |
As at 30 Sept 2023 |
||
|
(Unaudited) |
(Unaudited) |
(Audited) |
||
|
Notes |
GBP |
GBP |
GBP |
|
|
Operating activities |
|
|
|
|
|
Loss after tax |
(725,839) |
(486,076) |
(1,397,967) |
|
|
Depreciation |
– |
104 |
– |
|
|
Finance costs |
19,685 |
23,010 |
45,748 |
|
|
Adjustment to Surface Liability |
– |
– |
– |
|
|
Share issue/warrant cost |
– |
– |
26,194 |
|
|
Unrealised currency translation |
126,864 |
261,566 |
182,264 |
|
|
Changes in working capital |
||||
|
Decrease/(increase) in trade and other receivables |
7 |
(81,607) |
(50,054) |
53,984 |
|
Increase/(decrease) in trade and other payables |
8 |
162,775 |
(39,568) |
272,664 |
|
Net cash flows from operating activities |
|
(498,122) |
(291,018) |
(817,113) |
|
Investment activities |
||||
|
Purchase of fixed assets |
– |
(748) |
– |
|
|
Investment in exploration assets |
(1,175,345) |
(621,988) |
(713,848) |
|
|
Net cash flows from investment activities |
(1,175,345) |
(622,736) |
(713,848) |
|
|
Financing activities |
|
|||
|
DFC Government grant |
6 |
1,600,178 |
– |
– |
|
Shares issued (net of issue cost) |
388,427 |
697,500 |
1,313,820 |
|
|
Net cash flows from financing activities |
1,988,605 |
697,500 |
1,313,820 |
|
|
Increase in cash and short-term deposits |
315,138 |
(216,254) |
(217,141) |
|
|
Cash and short-term deposits brought forward |
129,853 |
346,994 |
346,994 |
|
|
Cash and cash equivalents at end of period |
|
444,991 |
130,740 |
129,853 |
The accompanying notes form an integral part of the Interim Financial Statements.
Notes to the Financial Statements for the six month period ended 31 March 2024
1. General
Blencowe Resources Plc (the “Company”) is a public limited company incorporated and registered in England and Wales on 18 September 2017 with registered company number 10966847 and its registered office situated in England and Wales at 167-169 Great Portland Street, Fifth Floor, London, England W1W 5PF.
The Group did not earn any trading income during the period under review but incurred expenditure in developing its principal assets.
The Consolidated Interim Financial Statements of the Company for the six month period ended 31 March 2024 comprise the financial statements of the Company and its subsidiaries (together referred to as the “Group”).
2. Accounting Policies
Basis of preparation
The Interim Financial Statements of the Group are unaudited condensed financial statements for the six month period ended 31 March 2024.
The accounting policies applied by the Group in these Interim Financial Statements, are the same as those applied by the Group in its consolidated financial statements and have been prepared on the basis of the accounting policies applied for the financial year to 30 September 2023 which have been prepared in accordance with IFRS as adopted by UK. The Group Financial Statements have been prepared using the measurement bases specified by IFRS each type of asset, liability, income and expense.
The Group Financial Statements are presented in GBP, which is the Group’s functional currency. All amounts have been rounded to the nearest pound, unless otherwise stated.
Government grants
This is the first reporting period the Group is recognising government grants. Government grants are recognized once the entity has complied with conditions attaching to them and they have been received. Governments grants are accounted for using the capital approach under which a grant is recognized outside the profit and loss. Government grants related to assets, are presented in the statement of financial position by deducting the grant in arriving at the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense.
Comparative figures
The comparative figures have been presented as the Group Financial Statements cover the 6 month period ended 31 March 2023 and the 12 month period ended 30 September 2023. During 2024, the Group discovered that share premium had been erroneously classified as share capital and administration expenses captured as share issue costs for interim accounts as at 31 March 2023. Refer to Note 12.
3. Critical accounting estimates and judgments
In preparing the Group’s Interim Financial Statements, the Directors have to make judgments on how to apply the Group’s accounting policies and make estimates about the future. The Directors do not consider there to be any critical judgments that have been made in arriving at the amounts recognised in the Group Financial Statements.
4. Significant accounting policies
The accounting policies adopted are consistent with those followed in the preparation of the annual financial statements of Blencowe Resources Plc for the year ended 30 September 2023. A copy of these financial statements is available on the Group website at https://blencoweresourcesplc.com.
5. Administrative fee and other expenses
|
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
GBP |
GBP |
GBP |
|
Directors’ remuneration |
69,857 |
70,023 |
140,051 |
|
Professional fees |
80,001 |
121,692 |
226,471 |
|
Salaries |
75,000 |
75,000 |
150,000 |
|
Listing fees |
20,933 |
18,218 |
41,123 |
|
Audit fees |
33,498 |
21,644 |
35,000 |
|
Share issue/warrant cost |
– |
– |
26,194 |
|
Administration fees |
23,500 |
23,500 |
47,000 |
|
Sponsorship |
5,690 |
– |
– |
|
Broker fees |
18,434 |
20,500 |
41,000 |
|
Travelling expenses |
11,034 |
7,959 |
16,852 |
|
Ugandan taxes |
342,751 |
– |
392,425 |
|
Miscellaneous fees |
4,445 |
87,888 |
72,625 |
|
Royalties |
1,244 |
– |
– |
|
Foreign currency (gain)/loss |
(3,901) |
– |
110,131 |
|
Total |
682,486 |
446,424 |
1,298,872 |
The Group had two employees who are key management personnel and three Directors. The Directors and the key management personnel’s remuneration related solely to short term employee benefits.
6. Non-Current assets
For the period ended 31 March 2024 intangible assets represents capitalised costs associated with the Group’s exploration, evaluation and development of mineral resources net of any Government grants received.
|
|
6 months ended 31 Mar 2024 (Unaudited) GBP |
6 months ended 31 Mar 2023 (Unaudited) GBP |
12 months ended 30 Sept 2023 (Audited) GBP |
|
Exploration assets |
8,662,145 |
7,065,176 |
7,604,564 |
|
Property, Plant and Equipment |
– |
644 |
– |
|
Grant from US Government (Refer below) |
(1,600,178) |
– |
– |
|
Total |
7,061,967 |
7,065,820 |
7,604,564 |
The company signed a US$5 million agreement with the U.S. International Development Finance Corporation (“DFC”) in order to provide substantial funding for the Orom Cross Definitive Feasibility Study programme, via a Technical Assistance Grant (“TAG”). The DFC is a proxy for the US Government which funds the organisation and ultimately sets its vision, parameters and funding distribution. DFC payments will be made as agreed feasibility study milestones are achieved. As part of the US$5 million Technical Assistance Grant (“TAG”) the DFC has a right of first refusal on commercial terms to arrange project financing for the Orom-Cross project, which may deliver Blencowe with a full funded solution to bring Orom-Cross into production with support from a major financial institution. The agreement is subject to various events of default.
7. Trade and other receivables
|
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
GBP |
GBP |
GBP |
|
Other receivables |
35,166 |
21,526 |
9,421 |
|
Prepayments |
78,304 |
114,375 |
22,442 |
|
Total |
113,470 |
135,901 |
31,863 |
8. Creditors: Amounts falling due within one year
|
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
GBP |
GBP |
GBP |
|
Payables |
707,912 |
103,980 |
644,585 |
|
Surface liabilities (Note 9) |
– |
143,036 |
– |
|
Accruals and provision |
194,352 |
167,827 |
39,159 |
|
Ugandan taxes |
336,680 |
– |
392,425 |
|
Total |
1,238,944 |
414,843 |
1,076,169 |
9. Surface liabilities
Blencowe Resources Uganda Limited, the Company’s subsidiary entered into an agreement for surface rights over the land in the mineral area of the licence. The land owners granted Blencowe Resources Uganda Limited a 49 year lease over an area. The liability to the land owners is to be paid in 8 instalments at defined dates with the final payment due in 2035.
|
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
GBP |
GBP |
GBP |
|
Total payable at the beginning of the period |
818,915 |
978,255 |
978,255 |
|
Utilisation |
– |
– |
(148,468) |
|
Interest charged during the period |
19,685 |
23,010 |
45,748 |
|
Exchange loss on valuation |
(55,051) |
(72,709) |
(56,620) |
|
Total payable as at period end |
783,549 |
928,556 |
818,915 |
|
|
|
|
|
|
Analysis between current and non-current liability |
|
|
|
|
Payable within 12 months |
– |
143,036 |
– |
|
Payable after 12 months |
783,549 |
785,520 |
818,915 |
|
|
783,549 |
928,556 |
818,915 |
The value of the lease is measured at the present value of the contractual payments due to the lessor
over the lease term, with the discount rate of 5%.
10. Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
|
Earnings |
GBP |
GBP |
GBP |
|
Loss from continuing operations for the period attributable to the equity holders of the Group |
(661,687) |
(478,269) |
(1,397,967) |
|
Number of shares |
|||
|
Weighted average number of Ordinary Shares for the purpose of basic and diluted earnings per share |
|||
|
210,540,876 |
168,803,923 |
200,041,594 |
|
|
Basic and diluted loss per share (pence) |
(0.31) |
(0.28) |
(0.70) |
There are no potentially dilutive shares in issue.
11. Related party transactions
The are no related party transactions during the period except for the Directors’ remuneration, which have been disclosed in note 5.
Sam Quinn is a director and shareholder of the Company and a Director of Lionshead Consultants Limited. During the period, Lionshead Consultants Limited charged fees for consultancy fees of £18,000 (31 March 2023: £18,000 and 30 Sep 2023: £36,000).
12. Reclassification
During 2024, the Group discovered that share premium had been erroneously classified as share capital and administration expenses captured as share issue costs for interim accounts as at 31 March 2023. These errors has been corrected by restating each of the affected financial statement line items for prior periods. The following table summarises the impact on the Group’s consolidated accounts.
|
Impact of reclassification |
|||
|
As previously reported |
Restatement |
As restated |
|
|
|
GBP |
GBP |
GBP |
|
Total assets |
7,332,461 |
– |
7,332,461 |
|
Total liabilities |
(1,215,363) |
15,000 |
(1,200,363) |
|
Net assets |
6,117,098 |
15,000 |
6,132,098 |
|
Share capital |
1,931,316 |
(656,250) |
1,275,066 |
|
Share premium |
7,428,329 |
671,250 |
8,099,579 |
|
Warrants reserve |
402,148 |
– |
402,148 |
|
Translation reserve |
7,264 |
– |
7,264 |
|
Retained earnings |
(3,651,959) |
– |
(3,651,959) |
|
Total Equity |
6,117,098 |
15,000 |
6,132,098 |
There is no material impact on the Group’s basis or diluted earnings per share and no impact on the total operating, investing or financing cashflows for the half year ended 31 March 2023.
13. Events after the reporting date
On 10 April 2024, the Company announced 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. The DFC is the primary US Government finance institution set up to provide financially sound solutions for private sector initiatives pertaining to critical challenges facing the world.
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.