Blencowe Resources Plc (LSE:BRES) has announced funding agreements with key project partners within an overall capital raising totalling approximately £1.9 million at an issue price of 5p, representing a small premium to the 4.8p closing share price on 19 July 2024.
The funding consists of £1,286,062 Project Partners Funding; 25,721,250 new ordinary shares at 5p in lieu of DFS costs, £459,639 Placing; 9,191,520 new ordinary shares at a placing price of 5p (arranged by Tavira Financial) and £159,063 Subscription; 3,181,260 new ordinary shares through direct subscription with the Company at a price of 5p.
Proceeds of the Funding Agreements and capital raise will allow the Company to progress its Definitive Feasibility Study for its Orom-Cross graphite project in Uganda alongside the continuation of grant funding being received from the US Government’s Development Finance Corporation.
Mike Ralston, chief executive of Blencowe Resources says; “We've got our own particular style of raising money. That is to ensure that we don't have excessive dilution by going out to the retail market and paying big discounts with lots of free attaching warrants. We'd much rather keep capital raises small and focused and do them at higher prices to ensure less dilution to our shareholders.
“The market's definitely taking notice of us, so there's a lot of good new relationship opportunities that are coming our way.”
In this interview with focusIR, investors will also learn: -
- How the company expects the Definitive Feasibility Study will be completed within twelve months
- What the ongoing financial support from the US Government’s Development Finance Corporation is likely to entail
- What shape upcoming newsflow will take in terms of Tier One offtake agreements, joint ventures, drilling programmes and the building of facilities in country
Reasons to add Blencowe Resources (LSE: BRES) to your watchlist:
- Developing World Class graphite deposit in Uganda; estimated deposit 2-3 billion tonnes graphite, near-to-surface.
- Pre-Feasibility Study (2022) indicates long-life, high margin, low CAPEX mining operation with a post-tax NPV8 of US$482M.
- 21 year Mining License awarded in 2019 and all other permits in place
US$5M grant awarded by Development Finance Corporation, a tier one US financial institution, to co-fund DFS and provide a project funding solution ahead
- DFS underway, Phase 2 metallurgical testwork completed, bulk sample testing in China underway
- Strong Government and local community support
- East African graphite considered as premier grade worldwide. Substantial percentage of higher value large flake product.
- Feasibility Studies underway for downstream beneficiation in-country to deliver higher weighted average sale price.
- First production targeted 2025
Mike Ralston, CEO of Blencowe Resources, was interviewed by Sarah Lowther for focusIR.
