TIDMBRES
RNS Number : 8781H
Blencowe Resources PLC
11 April 2022
Date: 11 April 2022
Blencowe Resources Plc
("Blencowe" or the "Company")
Specialist Mining Investor RAB Capital increases holding to 10%
through GBP800,000 placement
Highlights
-- RAB Capital to invest GBP800,000 to become largest shareholder in Blencowe
-- 16,000,000 new ordinary shares to be issued at 5p
-- RAB Capital will hold 17,800,000 shares, being 10% of the enlarged share capital
-- Blencowe to use funds to fast-track Pre-Feasibility Study
("PFS") at Orom-Cross graphite project and ongoing exploration work
at Akelikongo nickel project
Blencowe Resources is pleased to announce a placing of
16,000,000 new ordinary shares at 5 pence per share ("Placing
Shares") exclusively with specialist mining investor RAB Capital
("RAB"), to raise gross proceeds of GBP800,000. In addition, RAB
will receive 1 warrant per 2 Placing Shares, exercisable at 8p for
3 years from admission. Therefore, 8 million investor warrants have
been issued to RAB as part of this placing, which was arranged by
Tavira Securities Limited.
Use of Proceeds
These proceeds will be used to enhance project development at
both of the Company's projects, namely Orom-Cross Graphite Project
and Akelikongo Nickel Project.
Blencowe is targeting completion of the Orom-Cross
Pre-Feasibility Study by mid-2022 and these funds will assist to
drive towards that goal. Furthermore, Blencowe will shortly be
underway on initial exploration work at the Akelikongo Nickel
Project, with a view to finding drill targets via airborne EM
(electromagnetic) work.
Holdings
RAB currently holds 1,800,000 Blencowe shares and following
admission of the placing shares it will hold 17,800,000 shares,
being 10% of the enlarged share capital.
This Placing is deemed a related party transaction as defined
under DTR 7.3. The independent director Sam Quinn considers the
terms of the Placing as fair and reasonable insofar as the
Company's shareholders are concerned.
Admission
The Company has made an application for 16,000,000 ordinary
shares to be admitted to trading on the official list and the
London Stock Exchange with effect from 8.00 a.m. on 19 April 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
177,929,950 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.
Chief Executive Officer of RAB Capital Philip Richards
commented:
"I am pleased to have taken a long-term and strategic stake in
Blencowe Resources. The priority Orom-Cross graphite project is
clearly of significant quality and global scale already and it can
play a material role in helping to meet the expected supply deficit
forecast ahead for graphite. Whilst at an earlier stage in its
development, the Akelikongo nickel sulphide project also appears to
carry significant promise and I look forward to the results of the
ongoing exploration campaign."
Executive Chairman of Blencowe Cameron Pearce commented:
"I am delighted that resource specialist fund RAB Capital has
elected to materially increase its shareholding in the Company at
this time. This is a validation of the work we have undertaken over
the last few years and the subsequent value we have created. RAB
Capital have confirmed they share our belief in the robust
economics and investment proposition of Orom-Cross, as well as the
broader outlook for global graphite demand and the expected
significant supply deficit.
For further information please contact:
Blencowe Resources Plc www.blencoweresourcesplc.com
Mike Ralston Tel: +44 (0)1624 681 250
info@blencoweresourcesplc.com
Investor Relations Tel: +44 (0) 7891 677 441
Sasha Sethi sasha@flowcomms.com
Tavira Securities Tel: +44 (0)20 7100 5100
Jonathan Evans jonathan.evans@tavirasecurities.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 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 through the Feasibility Study phase as it drives
towards first production targeted for 2023.
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.
Akelikongo Nickel Project
Akelikongo is a highly prospective nickel sulphide exploration
project that has previously had considerable work completed by Rio
Tinto and Sipa to establish three mineralised lenses to date. It
represents an opportunity for Blencowe to add further value through
a targeted work programme that will seek to delineate higher grade
and thicker intercepts of nickel.
Nickel sulphide deposits are rare and valuable and the prospect
of further exploration success gives Blencowe suitable incentive to
develop this asset under a structured earn-in agreement, whereby
100% of the asset can ultimately be acquired for US$1.5m, 100%
payable in shares.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IOEBBLLFLZLFBBZ
(END) Dow Jones Newswires
April 11, 2022 02:30 ET (06:30 GMT)
Blencowe Resources (LSE:BRES)
Historical Stock Chart
From Jun 2024 to Jul 2024
Blencowe Resources (LSE:BRES)
Historical Stock Chart
From Jul 2023 to Jul 2024