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Blencowe Resources #BRES – Fourth tranche US$0.5million Grant Funding received from US International Development Finance Corporation
Blencowe Resources Plc (LSE: BRES) is pleased to announce the receipt of a fourth tranche of funding from the United States International Development Finance Corporation (“DFC”). The DFC is the private sector lending arm of the United States Government. This latest payment of US$0.5 million will continue to support the ongoing Orom-Cross Definitive Feasibility Study (“DFS”) costs and brings the total grant funding received to US$3.5 million since the Technical Assistance Grant funding agreement was signed with the DFC in September 2023.
Highlights:
· US Government support: via the DFC, remains a committed partner to help deliver Orom-Cross Definitive Feasibility Study (“DFS”).
· US$3.5 million input by DFC to date: with a further US$1.5M committed on future milestones.
· DFC remain an invested and incentivised cornerstone party: to consider a full funding solution for Orom-Cross project implementation once the DFS is successfully completed.
· DFS work continues: as Blencowe drives towards completion, including offtake contracts.
Blencowe has successfully completed further key DFS milestones to unlock an additional $0.5 million grant funding from the DFC. This is part of the overall US$5.0 million Technical Assistance Grant agreement that Blencowe completed with the DFC in September 2023. Orom-Cross remains one of the only pre-production resource projects worldwide to have received this US Government/DFC assistance.
Blencowe continues to consider all means possible to value-add at Orom-Cross, using the Project’s unique characteristics to appeal to graphite industry leaders. Orom-Cross is becoming well known in graphite markets as one of the lowest operating cost producers worldwide that can also be brought into production for a much lower capital cost than most of its peers. Furthermore, the high quality of its end products have attracted a host of interested parties for offtake discussions, and the Company is working through a rigorous final bulk sample testing process to become qualified to then lock down offtake contracts with tier one buyers.
The DFC involvement in the Project provides Orom-Cross with top tier international funding party credibility, as well as actual cash towards the completion of the DFS. This unique collaboration is another key differentiating factor for the Company.
Cameron Pearce, Executive Chairman commented;
“We will continue to use a combination of DFC funding and our own funds raised to get the DFS completed in a fashion that does not substantially dilute our shareholders. This is important to us. We have come a long way through DFS already with minimum impact to our register and we want to continue that same course of action ahead.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
|
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
|
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Blencowe Resources #BRES – Alan Green talks to MD Mike Ralston
Alan Green talks to Blencowe Resources #BRES MD Mike Ralston. We cover progress with the DFS and the recent Orom Cross graphite testing in China before covering today’s maiden offtake agreement with Chinese graphite giant Jilin for the large flake product. Mike then discusses the plans for pilot plant production could commence at Orom Cross in 2026, plus other potential deals offtake partners and graphite producers and comparisons to peer group. We then discuss funding from an investor network in Africa, and the $5m package from the US Government’s International Development Finance Corporation, before Mike gives a heads up on likely events in the coming months.
Blencowe Resources #BRES – Third tranche US$1 million Grant Funding received from US International Development Finance Corporation
Blencowe Resources Plc (LSE: BRES) is pleased to announce the receipt of its third tranche US$1 million funding from the United States International Development Finance Corporation (“DFC”). This payment, representing a further 20% of the full US$5 million DFC grant further supports the ongoing Orom-Cross Definitive Feasibility Study (“DFS”) costs, bringing the total received to US$3 million since the agreement was signed in Sept 2023.
Key Milestones Achieved Driving DFS Progress:
· Completion of SPG (spheronised, purified graphite) coating test work and waste composite flake test work studies.
· Initiation of a commercial study into a downstream processing facility to deliver 99.95% uncoated SPG, located in Uganda.
· Completion of expandability test work by leading US graphite technical expert.
Blencowe successfully completed all of the above milestones to achieve this latest disbursement of DFC funds, with results continuing to highlight Orom-Cross as a standout graphite project with unique characteristics.
The successful coating of SPG product marks a crucial step towards product qualification, positioning Orom-Cross favourably with tier-1 offtakers. Additionally, achieving success in expandability testing enhances the potential for high value niche sales for large flake products which could drive the bulk of Orom-Cross revenues in the future.
Blencowe is exploring the potential establishment of a downstream processing facility in Uganda to further upgrade the purity of the Company’s graphite from a 96% concentrate to 99.95% uncoated SPG. This transformation would elevate the value of the lowest value small flake concentrate from approximately $600/tonne to around $2,500/tonne, setting Orom-Cross apart from its peers and meeting significant demand for a 99.95% graphite product range sourced from outside China. Although still in its early stages, this strategy promises significant value addition with commercial studies underway assessing its integration into the core Orom-Cross production strategy.
Blencowe remains actively engaged with potential offtake partners worldwide, fostering relationships with tier-1 offtakers who are evaluating product samples constantly. Blencowe’s CEO and COO will travel to China and South Korea over the next few weeks to further these discussions and to establish key offtake relationships.
Cameron Pearce, Executive Chairman commented;
“I would like to thank DFC for their ongoing support, they are an outstanding project partner and we are able to accelerate the pace of our studies with their assistance. Our DFS results underscore what an exceptional graphite project Orom-Cross is, including its size and scale, low operating costs, low capital start-up costs and high quality purified end products which are building interest with key offtakers and end users. We are committed to adding value wherever possible to ensure that our DFS delivers a standout result ahead.”
Mr Pearce added “Blencowe is making significant strides with the feasibility study as evidenced in this latest disbursement from DFC. We are confident in the continued expansion of the natural flake graphite market and we aim to be one of the few projects that successfully navigates both the qualification and funding processes to achieve production status ahead.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
|
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite Project
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger coarse flakes within the deposit.
A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit. Blencowe completed a successful Pre-Feasibility Study on the Project in July 2022 and is now within the Definitive Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit, with an initial JORC Indicated & Inferred Mineral Resource of 24.5Mt @ 6.0% TGC (Total Graphite Content). This Resource has been defined from only ~2% of the total tenement area which presents considerable upside potential ahead. Development of the resource is expected to benefit from a low strip ratio and free dig operations together with abundant inexpensive hydro-electric power off the national grid, thereby ensuring low operating costs. With all major infrastructure available at or near to site the capital costs will also be relatively low in comparison to most graphite peers.
Buy Blencowe Resources #BRES with a 73p price target says First Equity
Buy Blencowe Resources #BRES says First Equity LtdBlencowe Resources #BRES – Placing to Raise £635,000
Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES), the natural resources company focussed on the development of the Orom-Cross Graphite Project in Uganda, is pleased to announce that it has raised £635,000 at 5 pence per share (“Placing”) through the issue of 12,700,000 new ordinary shares of 0.5p (“Placing Shares”). The Company will issue investors in the Placing with 1 warrant per 2 Placing Shares (Investor Warrants”) which are exercisable at 8p for a period of 3 years from Admission of the Placing Shares.
Use of Funds
The net proceeds of the Placing will be used to maintain momentum on the Definitive Feasibility Study (“DFS”) work, which has been underway since start of 2023, and is managed by leading firm CPC Engineering.
The Company recently announced it had passed the key screening hurdles by the Development Finance Corporation (“DFC”) regarding a US$4.5M Technical Assistance Grant (“TAG”) to fund 50% of the DFS. The Company expects to complete the process of obtaining the TAG with DFC over the coming weeks and then be able to draw down funds for the DFS work. The net proceeds allows the Company to avoid any immediate delay to the DFS programme whilst the DFC grant is being finalised.
In parallel, the Company awaits results from its metallurgical testing programs in both China and the United States of America. In January 2023 the Company delivered 20kgs of concentrate to technical experts in Wuhan University of Technology in China and 5kgs to American Energy Technologies Co. for SPG and expandables testing. A further 100 tonnes bulk sample has been extracted and is in transit to Jilin Huiyang New Material Technology Company, with results expected to reconfirm historic results of IMO testing in Perth, which demonstrated concentrates from Orom-Cross is of consistently high quality. The net proceeds will enable the Company to accelerate these discussions.
Related Party Transaction
RAB Capital, Jangada Mines plc and JUB Capital are considered related parties on the basis their respective holdings are greater than 5%. The major shareholders participated in the Placing which is deemed a related party transaction as defined under DTR 7.3. The Board considers their participation in the Placing are fair and reasonable insofar as the Company’s shareholders are concerned having taken financial advice from its financial adviser Tavira Financial Ltd given the Board does not have an independent director.
|
Major Shareholder |
Placing Shares |
% of the Placing |
|
Jangada Mines plc |
2,000,000 |
15.7 |
|
RAB Capital |
1,500,000 |
11.8 |
|
JUB Capital |
800,000 |
6.3 |
Admission
An application has been made for 12,700,000 Ordinary Shares to be admitted to trading on the official list and the London Stock Exchange from 8.00 a.m. on 23 May 2023 (“Admission”).
In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following Admission, the Company’s enlarged issued ordinary share capital will comprise 209,379,950 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury. Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA’s Disclosure Guidance and Transparency Rules.
Cameron Pearce Executive Chairman commented:
“We are very pleased to secure additional funding to continue the DFS work programmes without delay. The DFC grant should be completed in the near future and the Company is focused on maintaining the momentum to optimise the benefits of this.
Securing the support of a tier one financial institution such as the DFC provides the Project and our Company with a high degree of credibility and we are working through the process with the DFC so that they may formally join as our partner on the balance of the DFC work.
At the same time we are making progress on our metallurgical studies in China and the US, with initial results expected in the near term. A favourable outcome in the test work has the potential to ultimately provide a funding solution for Orom-Cross to first production.
I look forward to providing further updates in the coming weeks.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn
|
Tel: +44 (0)1624 681 250 info@blencoweresourcesplc.com |
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Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441 Email: sasha@flowcomms.com |
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733 jonathan.evans@brandonhillcapital.com |
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First Equity Limited Jason Robertson |
Tel: +44 (0)20 7330 1883 jasonrobertson@firstequitylimited.com |
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite Project
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger coarse flakes within the deposit.
A 21-year Mining Licence for the Project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit and Blencowe completed a successful Pre-Feasibility Study in 2022. The Company has now moved into the Definitive Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content, with only a small percentage of the overall deposit drilled to date. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
Blencowe Resources #BRES – Strategic Funding Partner for Orom-Cross Graphite Project
Blencowe Resources Plc (“Blencowe” or the “Company”) (LSE: BRES) is pleased to announce it has passed the key Screening hurdle within the DFC in order to move forward to secure a substantial Technical Assistance Grant.
The process now moves to a Grant Agreement and other final requirements to complete this funding solution. The TAG under consideration for Orom-Cross is up to US$4.5M for costs associated with the Definitive Feasibility Study and the terms are considered advantageous to Blencowe as any repayment would only occur if and when the project goes into production at a future date. The TAG provides for DFC to pay 50% of agreed costs within the Orom-Cross DFS, with Blencowe to provide the remainder.
Once consummated this relationship could also provide Orom-Cross with a potential project funding solution as the TAG will require a ROFR for debt on commercial terms for full project implementation. Debt funding to build a mining operation remains one of the principal challenges for all graphite projects hence this ROFR would further de-risk Orom-Cross by adding an internationally respected tier one financial institution as a key project supporter for this funding ahead.
Highlights:
· Blencowe passes key hurdle for engagement with US project development financial institution, the DFC.
· US International Development Finance Corporation is America’s leading development finance institution that partners with the private sector to provide finance solutions for project development in markets deemed as critical.
· DFC geared to provide funding assistance for Orom-Cross as part of the US Government’s strategic drive for further access to critical minerals and metals, within its wider renewables strategy.
· Orom-Cross has successfully passed through the key Project Screening test within DFC, with both Parties now moving to a binding Grant Agreement.
· Blencowe is seeking up to US$4.5 million as a Technical Assistance Grant (“TAG”) for Definitive Feasibility Study costs for the Orom-Cross Graphite Project (“Project”).
· As part of the Grant Agreement DFC will require a right of first refusal (“ROFR”) on debt finance for the full project implementation, which would give Blencowe a potential funding solution ahead with a major financial institution.
About International Development Finance Corporation
The DFC is the primary US Government finance institution set up to provide financially sound funding solutions for private-sector initiatives pertaining to critical challenges facing the world, in this case the drive towards increased sustainability across the planet. It is an agency of the United States federal government and represents US interests.
DFC’s lending capacity is used to provide loans, guarantees, equity investments and political-risk insurance for private-sector led development projects, feasibility studies and technical assistance. DFC invests across several sectors with stated goals of empowerment, innovation, investment into Africa and climate change.
Orom-Cross is directly linked with several of these goals. It may ultimately become one of the largest graphite producing operations in the world, over a very long mine life, delivering a concentrate as end-product which is a non-replaceable input component to batteries. These batteries provide the means to store energy across many different renewable energy applications as well as to replace vehicles powered by fossil fuels with electric vehicles (“EVs”). Electric vehicles are powered by lithium-ion batteries which have more graphite within them than any other metal (up to 70kgs graphite per battery) and EV demand is accelerating at a rate where it is doubling every few years, and expected to continue exponentially into the future. Graphite is therefore high on the US Government critical metals and minerals list and securing long term supply of graphite is a key strategy.
Orom-Cross will also deliver a greener graphite product than many other producers through a variety of production initiatives, including the use of hydro-power for all mining and processing energy requirements. Orom-Cross aims to become one of the leading sustainable mining projects worldwide and this is considered very important in a rapidly changing landscape where every participant along the EV supply chain will be audited on their sustainability credentials by OEMs.
Cameron Pearce, Executive Chairman commented;
“This milestone represents a significant step forward in the development of Orom-Cross. We have now further de-risked the Project by introducing a high quality funding partner that will ultimately cover a substantial portion of the costs to complete the DFS.
This same partner is a highly respected international financial institution that may also deliver a debt funding solution for the construction of the plant and associated infrastructure once we move into the implementation stage, which adds another dimension altogether. We are therefore covering several important bases here to provide an all-encompassing funding solution to ensure that we can successfully bring Orom-Cross into production over the medium term once we have completed our final feasibility studies. By doing this as a Technical Assistance Grant Blencowe is importantly retaining 100% ownership in the Orom-Cross Project as we believe the completion of the DFS will add significant additional value ahead, which we want to retain in full for our shareholders.
DFC is a tremendous partner for Blencowe given its considerable experience assisting private-sector companies through project development stage and into production. DFC has experience of both the continent and the country we are operating within, as well as expertise dealing with Governments and other stakeholders. All parties understand the tremendous value that Orom-Cross presents going forward within a rapidly accelerating renewable energy market, and more specifically a rampant lithium-ion battery EV market.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
|
|
Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
|
Tavira Securities Jonathan Evans |
Tel: +44 (0)20 3192 1733 jonathan.evans@tavirasecurities.com
|
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First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
|
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite Project
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger coarse flakes within the deposit.
A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit. Blencowe completed a successful Pre-Feasibility Study on the Project in July 2022 and has now moved into the Definitive Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource of 24.5Mt @ 6.0% TGC (Total Graphite Content). This Resource has been defined from only ~2% of the total tenement area which presents considerable upside potential ahead. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
Blencowe Resources #BRES – Strategic Investment by AIM-Listed Jangada Mines plc and Two Existing Major Shareholders
Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce a placing of 18,750,000 new ordinary shares (“Placing Shares”) at 4 pence per share to raise a total of £750,000 (“Placing”) from three existing shareholders. The placees will receive 1 warrant per 2 Placing Shares, exercisable at 8p for 3 years from admission (“Investor Warrants”).
Highlights
- £750,000 raised at 4p per share with 3 existing investors
- Jangada Mines plc to increase holding from 2% to 9.5% of enlarged share capital
- Existing major shareholders RAB Capital and JUB Capital continue to invest pro rata to their existing 10.0% and 8.2% shareholdings respectively
- Asset-level transactions now targeted for DFS and ultimate development of Orom-Cross
The Placing was cornerstoned by Jangada Mines plc whom invested £610,000, which has increased their holding from 2% to 9.5%. Also, the Company’s two other largest institutional investors RAB Capital and JUB Capital have subscribed for the remaining £140,000 in the Placing, on a pro rata basis, to maintain their respective 10.0% and 8.2% holdings in the enlarged share capital of the Company following the Placing.
Use of Proceeds
The funds will be dedicated to fund the delivery of a 100 tonne bulk sample from Orom-Cross to China and general working capital.
On 3 October 2022, the Company reported an approach from a potential strategic party looking to undertake further off-site testing ahead of potentially providing an offtake and funding solution for the development of Orom-Cross. This successful capital raise will enable the Company to accelerate the bulk sampling plans and build on the highly encouraging PFS results.
Admission of Shares to Trading
The Company has made an application for 18,750,000 ordinary shares to be admitted to trading on the official list and the London Stock Exchange with effect from 8.00 a.m. on 31 October 2022 (“Admission”).
In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following Admission, the Company’s enlarged issued ordinary share capital will comprise 196,679,950 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury.
Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA’s Disclosure Guidance and Transparency Rules.
Executive Chairman of Blencowe Cameron Pearce commented:
“I am delighted to welcome Jangada Mines as a new significant shareholder in the Company. They share our view of the inherent value of Orom-Cross, which has already returned a NPV of US$482M from a fraction of our broader resource. I would also like to thank our two major shareholders for their continued support and maintaining their holdings through participation in the Placing. At a time when raising capital for junior resource companies remains difficult, we are delighted to have secured funding sufficient to provide working capital for a year at the plc level and also enable us to commence the process to deliver a 100 tonne bulk sample to our potential strategic partner in China.
As we have previously stated, given the substantial disconnect between our market capitalisation and asset value, the focus of the Company is to enter strategic transactions at the asset level for material development, thereby minimising shareholder dilution and capturing a fairer reflection of value. The Company has previously advised it hopes to execute its first asset level transaction in the current quarter, which is expected to provide sufficient funds to complete the DFS. This is running in parallel with the ongoing discussions with our potential strategic partner in China.
I look forward to updating shareholders as appropriate.”
For further information please contact:
|
Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
|
| Investor Relations
Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
| Tavira Securities
Jonathan Evans |
Tel: +44 (0)20 3192 1733
jonathan.evans@tavirasecurities.com
|
| First Equity Limited
Jason Robertson |
Tel: +44(0)20 7330 1833
jasonrobertson@firstequitylimited.com
|
Twitter https://twitter.com/BlencoweRes
Blencowe Resources #BRES – Approach from Potential Strategic Party in China
Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce it has received an approach from a group in China that has the potential to ultimately provide an offtake, funding and development scenario for its 100% owned Orom-Cross graphite project in Uganda.
Highlights:
- Approach received from a strategic party in China with extensive experience in graphite.
- Potential to provide offtake contracts and project funding solution for Orom-Cross.
- Additional bulk samples to be delivered to China for further off-site testing.
- Pilot plant strategy in Uganda suspended, removing material near-term capital requirement.
- End-product samples as 96% LOI concentrate to be shipped to Chinese and European firms for trials to lift to 99.9995% LOI product for batteries.
- Technical Data Sheets sent to prospective end users to confirm interest and support for Orom-Cross concentrates. Feedback, interest and discussions already underway.
Based on these discussions, the Company has agreed to send a bulk sample of ~100 tonnes from Orom-Cross to China as soon as possible to enable further metallurgical test work to be undertaken by the potential strategic party. This is subject to the Company receiving necessary permits to move this raw material from Uganda, which are being sought immediately.
Blencowe has already been able to share significant data with the potential strategic party having previouslycompleted two stages of bench scale metallurgical testing with SGS in Canada (30kgs) and more recently a further round of testing via a small pilot plant (130kgs) in Perth, Australia. This next-level proposed test in China, using their existing infrastructure and experience, would be done on a considerably larger scale which will give all parties more knowledge of the end product that can be produced in an enlarged scenario from Orom-Cross. It is hoped that this program will initially lead to non-binding MOUs for offtake, and ultimately to binding sale agreements for a substantial portion of the initial 50,000tpa product to be produced from stage one within Orom-Cross. There may also be potential for EPC and funding contracts emanating from this relationship, potentially providing a solution to the CAPEX requirement to production.
Given this interest out of China and the relatively short period to complete this test work over the next 6-9 months the Company has taken the decision to postpone its plans to build an on-site pilot plant facility of 2,000tpa at Orom-Cross. Binding offtake contracts to purchase Orom-Cross graphite would likely remove the need for a pilot plant, as the principal rationale for its implementation was to provide product to would-be offtakers to enable them to assess its viability for their own uses. A direct impact of this decision is that there is no longer a requirement to raise substantial cash (circa US$10M) in the near term via the equity markets to fund the on-site pilot plant.
The Company will continue to keep the market informed of progress on these discussions, as well as further key milestones achieved from the ongoing DFS (please see RNS of 26 September 2022 for further information).
Cameron Pearce, Executive Chairman commented;
“China is currently the most mature graphite market worldwide and entering into an offtake relationship there would be very valuable to us given the highly attractive economics at Orom-Cross, which already has an NPV8 of US$482M based on a 14-year mine life from just 2% of our broader graphite resource as currently drilled out.
We believe this bulk sample trial will prove highly significant and is potentially a precursor to a full offtake agreement and subsequent project funding, which in turn would enable us to kick start production with a critical mass of product sold to drive profitability and cash flow”.
The graphite market is evolving very quickly and we will see a lot of change ahead as the world drives towards 100 million expected electric vehicles by 2030. The Chinese market remains the largest by far, and will remain so for some time. Establishing a strong and commercial relationship with Chinese partners is therefore decisive and is a natural progression for the Company. Given this positive development we have elected to postpone any decision on a pilot plant on-site until these trials and discussions have reached a conclusion as it is expected a positive result will remove the need for a pilot plant, with the project instead moving straight into full development. This decision will not only save us considerable cash outlay right now, but potentially expedite the development of Orom-Cross.”
For further information please contact:
|
Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
|
| Investor Relations
Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
| Tavira Securities
Jonathan Evans |
Tel: +44 (0)20 3192 1733
jonathan.evans@tavirasecurities.com
|
| First Equity Limited
Jason Robertson |
Tel: +44(0)20 7330 1833
jasonrobertson@firstequitylimited.com
|
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite Project
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger coarse flakes within the deposit.
A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit and Blencowe is now moving into the Definitive Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
Blencowe Resources #BRES – Definitive Feasibility Study Commences on Orom-Cross Graphite Project
Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce that it has commenced the Definitive Feasibility Study for its flagship Orom-Cross graphite project located in Uganda, East Africa.
Highlights
· Definitive Feasibility Study (DFS) commences with target completion date 2H-2023.
· Engagement with specialist graphite engineering firm to manage the DFS.
· Blencowe currently reviewing various options for strategic alliances in key areas within the Orom-Cross project, including;
o Offtake
o Funding
o EPC (Engineering, procurement and construction of plant)
This follows outstanding Pre-Feasibility Study results (NPV8 US$482M: IRR8 49%) as presented to the market in July 2022, which have prompted the Company to move quickly on to this next stage of project development. The DFS is the last step in terms of major studies prior to the board making a decision to mine.
Blencowe is currently in the final stages of a process to select an experienced independent engineering firm to manage and ultimately sign off on the DFS. The Company anticipates announcing the engineering partner in the near term.
The Company is also assembling a strong management advisory team to assist with all key aspects of the study, including plant design, engineering, infrastructure, mining, operations, sales and marketing (offtake), environmental and social aspects, and all project funding. This team will comprise of resource executives who have considerable experience delivering projects through to production in Africa, as well as specific graphite experience. They will assist the existing Blencowe management team at all levels to deliver a successful DFS.
Metallurgical test work already completed in both Canada and Australia indicates that Orom-Cross can produce several high-quality end products as a 96-97% LOI concentrate. Additional metallurgical test work is anticipated in 2023, as part of the DFS, to test the expandability, spheroidisation and spherical graphite purification (SPG) properties, as the ability to cost-effectively further upgrade Orom-Cross concentrates is expected to add significant additional value to the project.
The Company will continue to keep the market informed of progress as key milestones within the DFS process are completed.
Cameron Pearce, Executive Chairman commented;
“We continue to make substantial progress at Orom-Cross, having moved from project acquisition through JORC Resource drilling and Pre-Feasibility Studies and now into the Definitive Feasibility Study stage, all within just 2.5 years. The quality and value of Orom-Cross graphite continues to inspire us to move as quickly as possible towards a decision to mine but at the same time we are ensuring all key areas are thoroughly analysed including third party reviews by industry experts. Quality and consistency of end product remain critical to building strong buyer relationships and we will continue to test the properties of our graphite as necessary to ensure our product is considered at the highest levels compared to other graphite products available worldwide. This is an ongoing exercise but more end product value is being added at each stage.”
He added “Graphite demand is growing fast as forecast and as the market becomes increasingly more aware that there are very few new graphite mines scheduled to commence production in the near term this demand-pull will potentially drive further price rises ahead, particularly for the products found at Orom-Cross. Blencowe owns 100% of one of the largest, high-quality graphite projects in the world and is therefore uniquely placed and significantly leveraged to take advantage of this emerging market moving forward.”
For further information please contact:
|
Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
|
|
Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
|
Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733 jonathan.evans@tavirasecurities.com
|
|
First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
|
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite Project
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger coarse flakes within the deposit.
A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit and Blencowe is now moving into the Definitive Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
Blencowe Resources #BRES relinquishes Akelikongo Nickel Project to focus on Orom-Cross
Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) announces that is has terminated its agreement with SIPA Resources (“SIPA”) with respect to the Akelikongo nickel project.
The decision by Blencowe to terminate the agreement means it is no longer required to issue US$350,000 of shares to SIPA as part of the consideration following the completion of Stage 1. It also means that the US$500,000 spend obligation by February 2023, for Stage 2, is no longer required.
The decision to relinquish its exposure to the Akelikongo project has been driven primarily by the truly exceptional results from the Pre-Feasibility Study (PFS) on the Company’s flagship Orom-Cross graphite project, which yielded a post-tax NPV8 of US$482M and an IRR 49% (for more information please see 19 July 2022 RNS). Accordingly, the Company believes it is in the best interests of its shareholders to focus all of its attention and resources on unlocking the inherent value at Orom-Cross.
Blencowe has targeted bringing Orom-Cross into initial production before the end of 2023, in order to commence the pre-qualification process of selling end product as concentrate into offtake parties. Given the disconnect between plc market valuation (US$5M market cap) and the value of the Orom-Cross Project (NPV US$482M) the Company is focused on completing an asset-level transaction to fund the project through development and into production. Further updates will be provided as and when appropriate.
Cameron Pearce, Executive Chairman commented;
“We have considered the merits of running two projects in parallel and at this particular point we believe that concentrating solely on our priority graphite project makes most sense. The excellent PFS results for Orom-Cross reaffirmed its value. Whilst this has yet to be reflected in our public markets valuation, we are now seeing heightened interest from industry and private equity. Accordingly we believe now is the appropriate time to focus solely on Orom-Cross, whilst removing any unnecessary plc dilution at this depressed level.
We do still see the synergistic benefits of another battery metal project near to Orom-Cross and we may revisit a nickel strategy in the future. However, we are seeing a fundamental shift in the graphite market right now with the price of small fines rising substantially over recent months as projected demand-supply issues finally begin to impact. The resource used in our US$482M NPV represents less than 2% of the total Orom-Cross resource base. We believe the scalability of Orom-Cross will hold significant appeal for prospective partners, particularly given a mining licence is already in place. We are focused on reaching this milestone and unlocking the value for all our stakeholders and look forward to updating shareholders in due course.”
For further information please contact:
| Blencowe Resources Plc
Sam Quinn |
www.blencoweresourcesplc.com
Tel: +44 (0)1624 681 250
|
| Investor Relations
Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
| Tavira Securities
Jonathan Evans |
Tel: +44 (0)20 3192 1733
jonathan.evans@tavirasecurities.com
|
| First Equity Limited
Jason Robertson |
Tel: +44(0)20 7330 1833
jasonrobertson@firstequitylimited.com
|
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite Project
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger coarse flakes within the deposit. A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit and Blencowe is moving into the studies phase shortly 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.