Blencowe Resources PLC Strategic Investment (0913E)
October 26 2022 - 2:00AM
UK Regulatory
TIDMBRES
RNS Number : 0913E
Blencowe Resources PLC
26 October 2022
Blencowe Resources Plc
("Blencowe" or the "Company")
Strategic Investment by AIM-Listed Jangada Mines plc and Two
Existing Major Shareholders
Highlights
- GBP750,000 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
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 GBP750,000 ("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").
The Placing was cornerstoned by Jangada Mines plc whom invested
GBP610,000, 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
GBP140,000 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 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
Tavira Securities Tel: +44 (0)20 3192 1733
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/
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