Jangada Mines PLC Investee Company Update: Blencowe Resources PLC (8815Z)
May 18 2023 - 4:52AM
UK Regulatory
TIDMJAN
RNS Number : 8815Z
Jangada Mines PLC
18 May 2023
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
18 May 2023
Jangada Mines plc ('Jangada')
Investee Company Update: Blencowe Resources PLC
Jangada Mines plc is pleased to note the announcement released
by Blencowe Resources PLC (LON:BRES) in which it holds a c. 9.5%
interest. The announcement is set out below without material
changes.
Start of Blencowe Resources PLC announcement
Date: 18 May 2023
Blencowe Resources Plc
("Blencowe" or the "Company")
Placing to Raise GBP635,000
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 GBP635,000 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
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."
End of Blencowe Resources PLC announcement
**ENDS**
For further information please visit www.jangadamines.com or
contact:
Jangada Mines plc Brian McMaster (Chairman) Tel: +44 (0)20 7317 6629
Strand Hanson Limited Ritchie Balmer Tel: +44 (0)20 7409 3494
(Nominated & Financial James Spinney
Adviser)
Tavira Securities Jonathan Evans Tel: +44 (0)20 7100 5100
Limited
(Broker)
St Brides Partners Ana Ribeiro jangada@stbridespartners.co.uk
Ltd Isabel de Salis
(Financial PR)
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