Blencowe Resources PLC Over-Subscribed GBP2m Capital Raise (2239S)
November 12 2021 - 3:33AM
UK Regulatory
TIDMBRES
RNS Number : 2239S
Blencowe Resources PLC
12 November 2021
Date: 12 November 2021
Blencowe Resources Plc
("Blencowe" or the "Company")
Over-Subscribed GBP 2m Capital Raise
Company now fully funded through next 12 months of Project
development, including Pre-Feasibility Study
Highlights;
Ø Over-Subscribed GBP2m fund-raise, including subscriptions from
Blencowe Board
Ø Orom-Cross now fully funded through to completion of PFS
Ø Outlook for graphite market continues to strengthen, driven by
EV sector
Blencowe Resources (LSE: BRES) (Blencowe or the Company) is
pleased to announce the successful completion of an over-subscribed
capital raise for GBP2 million at 5p through the issue of
40,000,000 new ordinary shares ("Fundraise"). This includes a
subscription of GBP75,000 from the Directors and CEO. The Fundraise
is subject to a simplified prospectus that is currently being
approved by the FCA ahead of the seeking of shareholder approval at
a general meeting to be arranged. The Company anticipates that
admission of the new ordinary shares will be in approximately 21
days.
Use of Funds
These funds will be used for the further development of the
Company's flagship Orom-Cross graphite project in Uganda,
including:
-- an updated JORC Resource early next quarter; and
-- Delivery of a Pre-Feasibility Study ("PFS") by mid-2022.
Blencowe announced results of the Preliminary Economic
Assessment ("PEA") for Orom-Cross in September 2021, which
highlighted a long-life, low-cost graphite project that delivers
significant operating margin per tonne; the resultant NPV (US$317
million) and IRR (49%) are considered exceptional and as such the
Company has moved into PFS stage. The Company will further refine
the project economics in the PFS and continue to use these studies
to engage with strategic and industrial parties that are seeking
graphite product.
Terms of the Fundraise
The capital raise was managed by the Company's brokers First
Equity and Brandon Hill Capital and was completed at 5p per new
ordinary share with half a warrant per new ordinary share that is
exercisable at 8p for 3 years from admission to trading. This price
represents a minimal discount to the 10-day VWAP and illustrates
the strong support for both the project and the wider battery
metals market. Blencowe is also pleased to announce the inclusion
of several institutional funds that have participated in the
Fundraise.
A further announcement will be made regarding the timetable for
admission of the shares to the LSE and issue of the prospectus
following the expected near-term approval by the FCA.
Graphite is an essential, non-replaceable input material into
lithium-ion batteries which will be manufactured in ever-increasing
quantities ahead to power electric vehicles (EVs). Analysts
forecast that the current 14 million EVs worldwide will rise to
somewhere between 100 - 500 million by 2030, all of which will
require batteries. Over the past three years the number of
megafactories, designed and built to mass produce lithium-ion
batteries, has risen from circa 50 worldwide to over 250 either in
production or being commissioned, and the number continues to grow
monthly. Together these megafactories represent a substantial
future demand for graphite.
With Orom-Cross representing a renewable energy source material
there has been considerable interest from funds who wish to become
more involved in green energy including the battery metals market.
This represents a significant milestone as the Company develops its
profile, and it further underlines the potential within the
Orom-Cross graphite project.
Cameron Pearce, Executive Chairman commented:
"We are grateful to all the existing and new shareholders that
have supported the Fundraise. The Company is now fully funded
through its next important phase of development and as we continue
to develop Orom-Cross and it becomes increasingly apparent what a
standout graphite project it is, I would expect to see the gap
between our current market cap of circa US$9M and PEA-derived NPV
of US$317M progressively converge.
We are focused on continuing to optimise the economics of
Orom-Cross further, with the next step in this process being an
updated JORC Resource early next quarter, targeting both resource
expansion and further grade uplift"
For further information please contact:
Blencowe Resources Plc www.blencoweresourcesplc.com
Sam Quinn Tel: +44 (0)1624 681 250
info@blencoweresourcesplc.com
Investor Relations Tel: +44 (0) 7891 677 441
Sasha Sethi sasha@flowcomms.com
Brandon Hill Capital Limited Tel: +44 (0)20 3463 5000
Jonathan Evans jonathan.evans@brandonhillcapital.com
First Equity Limited Tel: +44(0)20 7330 1833
Jason Robertson jasonrobertson@firstequitylimited.com
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
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
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 16.3Mt @ 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.
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